English councils are spending enormous sums on landlord incentive payments. Consequently, they aim to house homeless families in private rentals. New data reveals this growing practice. Campaigners call it a senseless waste of public money. The group Generation Rent gathered this information. They used freedom of information requests. Specifically, thirty-seven councils spent over thirty-one million pounds. This funded one-off landlord incentive payments on nearly eleven thousand occasions.
These payments persuade landlords to accept homeless tenants. Many councils face severe budget deficits. However, they still use this method extensively. The practice has grown dramatically in London. Spending there increased by fifty-four percent since 2018. Manchester City Council spent the most overall. Their total reached £3.3 million last year. Enfield Council in London paid £2.7 million. Similarly, Ealing Council spent £2.3 million. Birmingham City Council paid £1.7 million.
Ben Twomey leads Generation Rent. He explained the difficult position for councils. Soaring rents and a frozen housing allowance create this crisis. Therefore, councils make desperate bids to avoid temporary accommodation. Sometimes they pay tens of thousands per landlord. The highest single payment was notable. Southwark Council paid one landlord £15,385. Furthermore, six London councils reported payments over £10,000. Only one council did this in 2018.
Twomey described the rental market as chaotic. He accused landlords of rigging the system for profit. Also, he urged the government to unfreeze housing allowance. He also supports giving mayors power to limit rent increases. However, industry representatives offered a different view. Chris Norris works with landlords. He called incentives a poor funding method. Nevertheless, he acknowledged an enormous shortfall exists. Housing allowance rates rarely match market rents.
Norris said landlords face real financial risks. Tenants relying on benefits often struggle to pay rent. Therefore, incentives mitigate potential arrears. They also encourage landlords to accept higher-risk tenants. He called it the least bad option currently available. Ultimately, he argued for a better welfare system. This would allow people to access homes without incentives.
Critics worry about potential abuse though. Landlords might play councils against each other. Some may even issue evictions to get more payments. Council leaders defend their actions. Grace Williams represents London Councils. She cited an extreme homelessness emergency. Boroughs have a legal duty to find accommodation.
She argues working with landlords is better than hotels. It offers better outcomes for families. It also provides improved value for money. Birmingham Council called the payments a necessary response. Over twenty-five thousand people need housing there. Ealing Council said payments help overcome barriers like poor credit history.
A Manchester spokesperson highlighted the alternative. Hotels and B&Bs are costly and often unlawful. They are also only a temporary solution. Therefore, landlord incentive payments seem a necessary evil for now.
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