0:01 AM, 1st July 2024, About A year ago 3
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The NRLA has slammed political parties’ failure to address housing benefit rates.
More than 1.5 million households rely on Local Housing Allowance (LHA) to help pay rent.
According to the NRLA, 65% of these households struggle with a gap between their LHA payments and monthly rent.
In April 2024 the LHA rate was once again pegged to the lowest 30% of rents in any given area. This followed a freeze introduced in April 2020 which had caused benefit rates to be detached from market rents.
According to the Institute for Fiscal Studies, this led to just 5% of private rental properties being affordable for those in receipt of LHA.
The NRLA has criticised political parties for not committing to permanently link housing benefit rates to the bottom 30% of rents throughout the next Parliament.
Ben Beadle, chief executive of the NRLA, said: “It is time to fix the broken housing benefit system once and for all. The lack of clarity about support in the future is causing insecurity and anxiety for renters and landlords alike. It undermines efforts to sustain tenancies and prevent homelessness in the first place.
“The lack of any pledges to address this issue by the main parties is unacceptable. The next government must confirm that housing benefit rates will permanently track market rents. This would provide the assurances needed that support would keep pace with the cost of housing.”
The Institute for Public Policy Research has warned that even with the LHA rate unfrozen, more than 800,000 households on Universal Credit will continue to face shortfalls between their housing support payment and the rent they pay.
The picture is set to worsen given that LHA rates are due to be frozen from April 2025.
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Member Since March 2022 - Comments: 349
11:48 AM, 1st July 2024, About A year ago
Oh a “blast” from the NRLA, that will scare those nasty politicians! They are right of course, LHA rates have not kept up with inflation or the rent rises brought on by inflation and drop in supply. LHA rates are supposed to essentially be set to cover the rent on the 30% of properties on the local rental market with the lowest rents. The signs are that these days there is not such a wide spread in market rents as there used to be. Example from my area, 2 bed accommodation LHA rate £529 lowest advertised rent is around £700 with most being around £800. These days £529 would not cover a single room in an HMO.
Even if LHA does get boosted as a result of the “blast”it won’t be by the 40-50% currently needed.
Luke P
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Member Since March 2015 - Comments: 1967 - Articles: 1
12:03 PM, 1st July 2024, About A year ago
What politicians? Until the election, we don’t know who’s in and who’s out. Not e of them are listening as their im campaign mode.
Tom Jenkin
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Member Since March 2023 - Comments: 37
12:26 PM, 1st July 2024, About A year ago
So in Seaford, East Sussex the LHA for a 1 bedroom flat is £720/month the cheapest flat 1 bed in Seaford is £850/month.
So if you are a single guy on UC it means out of your £368/month UC you have to find £130/month plus your utility bills.
It is just not feasible, and that is why any landlord taking someone on benefits as a tenant is asking for trouble.
I know people work and get UC but because the HB is rolled into the UC it only takes a cple weeks off sick for a tenant to not be able to pay the rent .
If you get statutory sick pay your UC claim is stopped and you have to make a new claim for HB .
Fortunately the system for paying statutory sick pay doesn’t talk to the UC computer system, the UC claimant has to tell them .
I found this out when one of my tenants was on statutory sick pay and they told UC who promptly stopped there UC and HB , the tenant then had to reapply for HB which took 9 weeks, fortunately for me her mother paid her rent while she waited it to be sorted out . When she went to CAB they told her not to tell UC she is on statutory sick pay unless it is more than 3 months because they will just stop the claim.