The Letting Centre

Recovery of overpaid housing benefit from landlord

Question: 323
My local authority has just written to me demanding the repayment of one week's housing benefit on one of my tenancies. I didn't know that the tenant had left until they told me. Surely I can't be liable. What can I do to get them to change their mind? After all, the tenant left without giving notice so I am at least one month's rent down and I will have to find a new tenant for the property.
Answer:
Unfortunately, a landlord can still be liable for repayment of overpaid housing benefit where the landlord or agent has elected to receive the housing benefit directly. The only way to prevent this occurring is by insisting that all housing benefit payments are made initially to the tenant. Regulations were changed in October 2001, (amendment to Reg. 101 of the Housing Benefit (General) Regs 1987 - see Letting Update, Oct 2001, p10) to discourage local authorities from seeking to recover from landlords unfairly. You should appeal their decision, and try to persuade the local authority to recover from the tenant as you had not colluded with the tenant in creating the overpayment and were not immediately aware the tenant had left the property.
References:	Pages:	Hyperlinks:
Letting Update Journal	Oct 2001 page 13	letting-update-journal.html
Letting Update Journal	Oct 2004 page 25	letting-update-journal.html
Letting Handbook	Chapter 15	letting-handbook-and-factsheets.html

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