The National Landlords Association (NLA), the UK’s leading representative body for private residential landlords, has welcomed a Housing Benefit Tribunal decision upholding an appeal that a tenant’s rental arrears begin as soon as the due date has passed.

According to Housing Benefit regulations, a landlord can apply to their local authority for direct payment of rent when eight weeks or more of arrears has accrued. Currently, some local authorities refuse direct payment within this period, citing Department for Work and Pensions (DWP) guidance which states that “a person cannot be in rent arrears in respect of a period that has not yet been served”.

In his judgement, the tribunal chairman categorically disagreed with the DWP view, saying: “Rent is in arrears once the contractual date for payment has passed, irrespective of whether rent is due in advance or in arrears.”

This decision, which does not set a legal precedent, may be used by landlords in a similar position when negotiating with local authorities over Local Housing Allowance (LHA) rent arrears.

Richard Price, director of operations at the NLA, said: “It is quite clear that the normal rules of renting should apply to Local Housing Allowance. According to most tenancy agreements, rent is payable in advance. Yet local authorities pay their Housing Benefit claimants in arrears.

“Therefore, when it comes to assessing the length of rent areas, there is a significant difference in approach between councils and landlords.

“The aim of the LHA was to put those tenants in receipt of Housing Benefit on a level playing field to those in the open market.

“This decision is good news for landlords and, although not binding, those who are experiencing similar problems should consider highlighting this decision to their local authority.”