Rent repayment orders expanded to protect benefit tenants

A government pilot allowing councils to use rent repayment orders to recover misused housing support payments is set to be expanded.

The Department for Work and Pensions, alongside the Ministry of Housing, Communities and Local Government, works with local councils to identify benefit-claiming tenants living in unlicensed properties, with landlords facing rent repayment orders from both tenants and councils.

The news comes as the Renters’ Rights Act will see the maximum amount of rent a landlord can be ordered to repay double from 12 to 24 months.

Private renters in receipt of housing support will have stronger protections

In a press release, the government explain the pilot scheme clamps down on landlords who operate properties without the required licence, ignore improvement notices, or leave their houses in mouldy, dire conditions.

The scheme gives councils streamlined access to Universal Credit data which is crucial for completing Rent Repayment Order applications.

The government say the scheme protects public money by stopping it from being wasted on unsafe housing through Rent Repayment Orders.

Minister for Social Security and Disability Sir Stephen Timms said: “Thanks to this pilot, private renters in receipt of housing support will have stronger protections against landlords who fail to meet public standards.

“No one should live in unsafe or unsuitable housing. We are giving local authorities the tools they need to deter bad housing practice, and ensuring better value for money by upholding safe standards.”

Take further action against rogue landlords and regain the public money they wrongly pocketed

In one of the trial areas in Camden, the council is using the data sharing to recover nearly £100,000 in housing support and make a fraud referral.

Councillor Richard Olszewksi, leader of Camden Council, says it is taking cash out of criminal landlords pockets and back into the public purse.

He said: “Everyone deserves a safe place to call home. With more than a third of households in Camden privately renting, it’s vital that we ensure landlords are meeting important safety and management standards for residents.

“This pilot helps us take further action against rogue landlords and regain the public money they wrongly pocketed. We’re investing this into more enforcement action and improving private sector housing conditions for everyone across the borough.”

Can deter criminality in the private rented sector

Justice for Tenants said: “This pilot has shown that we can deter criminality in the private rented sector and help fund housing enforcement services by making those who break the law shoulder more of the cost.

“This pilot is a massive win for all law-abiding landlords, tenants receiving public funds, the NHS, and every taxpayer in the country.”

The scheme is set to be expanded to 38 further areas including Leeds, Darlington, Bristol and Portsmouth.