Low LHA Rates Lock Out Claimants

Housing benefit rates paid to claimants renting privately have fallen well below actual market rents - leaving claimants with no access to housing. Since 2011, Local Housing Allowance (LHA) rates have been supposed to reflect the lowest 30% of market rents, but due to a series of caps it has not risen as fast as rents in many areas. This means claimants in some areas - particularly those under 35 who can only claim the rate for a shared room - cannot afford to rent at all and may face street homelessness. The news will raise concerns among housing associations, with social sector tenants’ benefit limited to LHA rates from April 2018. In some areas - particularly those of low demand - the shared room rate will be well below existing social rents, meaning tenants on benefits will struggle to pay. Read more on the CIH website.