Calls for Direct Housing Benefit Payments to Landlords Grow Amid Universal Credit Concerns

The debate over Universal Credit and its impact on the rental market continues to intensify, with growing calls for housing benefits to be paid directly to landlords rather than tenants. Patrick Bullick, managing director of London-based Stanley Property and a former Propertymark board member, has highlighted how the current system has made landlords increasingly reluctant to let to benefit claimants…

The Problem with Tenant-Managed Housing Payments

Prior to the introduction of Universal Credit, housing benefit was paid directly to landlords by local authorities, ensuring that rent was covered. Under the current system, the housing element of Universal Credit is given to tenants, who are responsible for paying their landlords. Bullick argues that for many tenants on low incomes, the financial pressures of everyday life mean rent payments can be deprioritised, leading to arrears and, ultimately, eviction.

He also criticises the slow and inefficient court system, which makes it difficult for landlords to recover unpaid rent. Housing officers often advise tenants not to vacate properties until a court order is issued, exacerbating delays. As a result, many landlords now avoid renting to tenants on benefits—not necessarily out of discrimination, but due to the financial risk involved.

Calls for Reform to Prevent Homelessness

Bullick and other housing experts are urging the government to reinstate direct payments to landlords, arguing that this would provide greater security for both tenants and property owners. He warns that failing to do so will only increase homelessness, as more families on Universal Credit struggle to maintain tenancies and end up in emergency accommodation—an expensive burden on the taxpayer.

He acknowledges that removing choice from tenants regarding their housing benefit payments may seem restrictive, but insists that ensuring rent is paid directly to landlords is a pragmatic solution. By guaranteeing rent payments, more landlords would be willing to let to benefit claimants, reducing the risk of evictions and the growing strain on homelessness services.

As concerns mount over the housing crisis, many in the property sector believe that revisiting direct payments to landlords could be a vital step in stabilising the rental market and protecting vulnerable tenants from the threat of eviction.