Tenants on benefits 'not paying'

Landlords across the country are losing out because of a change to how the government pays benefit to private tenants, according to a report.

A number of buy-to-let investors spoken to by the BBC said that the new scheme, where tenants rather than landlords receive rent payments from the government, is leading to unscrupulous behaviour.

The government's intention in providing rent money to tenants was to give them freedom of choice about where they live, as well as educating them financially.

However, landlords have complained that tenants are simply making off with the money instead.

"I've lost more than £56,000 and already had four houses repossessed because I've not been able to keep up with repayments," Shazli Ahmed from Birmingham told the broadcaster.

Worries have been expressed by the National Landlords Association and other industry groups that the change in policy - which took place in April last year - could lead to increased homelessness.

It was suggested that many landlords would be reluctant to take on tenants using the scheme, because of fears of rent avoidance.

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