Tenants on Direct Payment Pilots Pay Rent On Time

The majority of tenants of two landlords taking part in direct payment pilot projects have made their first rent payments on time.  A positive early snapshot is emerging from the six 12-month pilot projects set up by the government in June to test the direct payment of benefits to claimants. Landlords have voiced concerns about the plans, which they fear could lead to increased rent arrears, threatening their income and affecting borrowing rates.  Family Mosaic housing association, which is running a pilot project with Southwark Council in London, was surprised to find 95 per cent of the 600 Family Mosaic tenants on the pilot already had bank accounts. The first direct payment of benefits to claimants last month saw 80 per cent of rent payments to the landlord go through on time. Read more on Inside Housing.