Tenants on housing benefit will find it harder to find a home if trials of a new payment scheme are a success, say private sector landlords.

Brighton and Hove is one of ten areas in England and Wales selected to test the Pathfinder initiative.

From February next year, housing benefit will be paid direct to tenants rather than landlords.

Works and pensions minister Malcolm Wicks has already visited the city to meet staff and councillors involved and letters are being sent out to all recipients of housing benefit to explain the changes.

The idea is to give tenants greater flexibility and to cut out abuse of housing benefit by unscrupulous landlords.

But Barry Cocum, head of marketing of the Southern Private Landlords Association, said: "For many people this will be the first time they have had large sums of money in their hand. The tendency among some tenants will be to give this money to a different kind of landlord - one that serves alcohol.

"For some tenants, paying rent is not top priority and at certain times of year, such as Christmas, they will buy presents rather than pay their rent.

"When the money was paid direct to landlords, the tenant and the landlord knew exactly what the score was. In the past, landlords were willing to take a chance on housing benefit tenants as they knew they were going to get their rent regularly paid.

"Now, fewer landlords will be willing to take the risk on tenants in receipt of housing benefits unless they know the tenant or have excellent references and guarantors. Those on benefit will find it difficult to find accommodation."

Robert Haycock, chairman of the Brighton and Hove branch of the association, said: "I hope the new system will work but I can see a lot of problems.

"In the long run, landlords will not risk taking on tenants on housing benefit as there is no guarantee rents will be paid."

The Southern Private Landlords Association, which has almost 3,000 members across the South, has called a meeting of its Brighton and Hove members at the Hilton West Pier Hotel, Kings Road, Brighton, tonight at 6.30pm to discuss the proposals.

Brighton and Hove City Council is holding an afternoon conference in the East Wing of the Brighton Centre tomorrow, from 2pm to 6pm.

The city has been chosen for the trial because of the large number of private tenants. One in five residents live in rented accommodation, one of the highest rates in the UK.

Sue John, the city council's deputy leader, said: "Under the Pathfinder scheme tenants will be given more choice where they live and more responsibility to pay their rents.

"Reforms will make it harder to abuse the system and save time and energy tackling fraud."

If successful, the new method of paying housing benefit will be introduced nationwide.

Monday December 08, 2003