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The Residential Landlords Association has called for a ‘level playing field’ over housing benefits that discriminate against private sector landlords and favour social landlords. The RLA welcomes government proposals on Universal Credits, but it’s the housing cost element, which will replace housing benefits, that causes concern.
At the moment allowances are paid direct to a tenant who may not necessarily pass it on to the landlord, whereas housing associations are paid directly. The former system allowed tenants to opt for local housing allowance to be paid directly to their landlords.
According to a survey performed by the RLA, over 50% of the landlords dealing with benefit tenants will consider stopping to do so unless local housing allowance is paid to them directly, they would stay in the market and continue to provide accommodation for those receiving benefits.”