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James's concern as housing benefit system fails vulnerable tenants

James Arbuthnot, Member of Parliament for North East Hampshire, this week expressed concern that changes to housing benefit rules are harming the most vulnerable tenants and reducing the availability of affordable accommodation.

Last year, the Government introduced a new 'Local Housing Allowance', with housing benefit being paid direct to the tenant rather than to the landlord. Yet vulnerable tenants under financial pressure from several different directions often struggle to manage their finances, resulting in rent money being spent elsewhere. Homeless charity, Crisis, has warned that this can result in rent arrears and eventually homelessness.

Landlords who were previously happy to take on tenants on housing benefit have suffered from non-payment of rent. Many landlords now routinely refuse to let to Local Housing Allowance claimants. According to the National Landlords Association, half of all landlords are reluctant to lend to tenants on Local Housing Allowance.

2153 people in East Hampshire and 1882 people in Hart are on local housing waiting lists, and a sizeable proportion of them are on housing benefit. Housing waiting lists have risen considerably in recent years, reflecting the shortage of affordable accommodation.

James said:

"For me, the new housing benefit rules are failing the most vulnerable in our society. Landlords are put off from renting to those on benefit, severely reducing the availability of decent places to live in. Some tenants struggle to manage their finances, using up their benefit money by rent pay day and they get into arrears and trouble as a result.

"I feel that tenants should have greater choice, and be free to specify that their housing benefit should go direct to the landlord. This will help those most in need, and allow them to get on with managing their other financial commitments. It’s a common sense, practical proposal which would help to make a real difference."