Is Universal Credit forcing rent reductions on landlords?
1 year ago | 16 comments
NRLA blasts housing benefit freeze warning it will harm tenants
12:02 AM, 31st October 2024, 1 year ago
8
The NRLA has slammed the Labour government’s decision to freeze housing benefit rates, warning it will “hurt vulnerable renters.”
Since March 2020, Local Housing Allowance (LHA) rates — which cap housing benefits for private renters — have been locked.
The Joseph Rowntree Foundation warns that, with LHA rates frozen for this parliament, private renters on housing benefits stand to lose an average of £700 a year.
Glaring gap in support for renters in the budget
In a written statement to Parliament, the Work and Pensions Secretary, Liz Kendall MP, said: “I can also inform the House that local housing allowance rates for 2025/26 will be maintained at the 2024/25 levels, following their increase in April 2024.”
Chris Norris, policy director for the National Residential Landlords Association (NRLA), says the budget left a glaring gap in support for renters.
He said: “Whilst the Budget spoke about protecting vulnerable people, it failed to confirm what we now know – that housing benefit rates will be frozen as of next year.
“It makes no sense whatsoever to provide support for housing costs that bear no resemblance to rents as they actually are.
“Coupled with tax hikes on the supply of homes to rent, announcements in the Budget will make it hardest of all for those claiming benefits to access and sustain tenancies in the rented sector.”
More renters pulled into poverty
According to the Joseph Rowntree Foundation, due to the freeze 50,000 renters will be pulled into poverty, 60,000 will be pushed into deep poverty and 80,000 (including 30,000 children) will be pushed into very deep poverty.
The Conservative government announced in April an average increase of £800 a year in Local Housing Allowance (LHA). However, private rents have surged by 29% across the UK since then, according to Zoopla, as demand for rental properties far outstrips supply.
Tags:
Conservative government, Housing Affordability, housing policy, housing supply, LHA increase, Local Housing Allowance, private rents, Rent Prices, Rental market, rental properties, tenant support, UK Housing, zoopla
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Member Since September 2018 - Comments: 3517 - Articles: 5
9:26 AM, 31st October 2024, About 1 year ago
hang on a min…NRLA campaigning for tenants?
How about they focus on the more important things that are making being a LL near on impossible, like impending legislation and possession rights??
If there is a drop in LL’s as a result of what is planned the campaign for increase in LHA is meaningless….the good LL’s (who run their business properly and according to the law who apparently the NRLA say the represent) wont be taking anyone on benefit tenants…..
Member Since December 2023 - Comments: 1582
9:30 AM, 31st October 2024, About 1 year ago
I think the NRLA should know that Local Housing Allowances were reset in April of this year using data gathered in September 2023.
It was the first rise since April 2020 which used data gathered in 2019.
I saw my area’s LHAs rise by less than 11% which is woefully inadequate.
I have always strived to keep my rents below LHA but this is becoming impossible (and besides, I no longer want to as I’d like tenants to move on so that I can escape the nonsense).
Member Since October 2013 - Comments: 1642 - Articles: 3
10:26 AM, 31st October 2024, About 1 year ago
I think this incompetent government believe if they keep the LHA low, and ban LLs refusing benefits tenants, LLs will be forced to reduce their rents accordingly.
Member Since May 2016 - Comments: 1570 - Articles: 16
10:32 AM, 31st October 2024, About 1 year ago
Labour are not concerned with raising revenue to support those who need it, but raising funds to pay for their Union paymaster (rulers) Pay-rises.
Labour don’t even know what a worker, or a woman is anyway, even if they were inclined to help them.
Member Since September 2024 - Comments: 95
1:22 PM, 31st October 2024, About 1 year ago
Does anyone on here actually believe NRLA on on the side of Landlords?
Please let’s see some answers.
Yes or No
Member Since May 2014 - Comments: 51
3:21 PM, 31st October 2024, About 1 year ago
I made my points to the NRLA. a while back and in a few days my membership will have ended. My tenancy’s allow for increases. so April next year my tenants will be given a new rent letter. and up goes the rents. sadly let the councils make either DHP’s or. I will issue Sec 8. nonpayment. etc
Member Since January 2015 - Comments: 1446 - Articles: 1
9:53 AM, 2nd November 2024, About 1 year ago
It might incentivise those housing benefit tenant able to work to get work even for the 18 hours per week they can do without losing 1p of their benefits
Member Since May 2016 - Comments: 28
6:30 PM, 6th November 2024, About 1 year ago
yet another example that the NRLA have lost the plot. Interestingly if you criticise them on social media they block you, speaks volumes.
They do not represent professional landlords and have become completely ineffective.
Time for an association with balls.