Government Must Tackle Rent Debt Crisis

Propertymark, along with other organisations, has called on the Government to complete and publish a full assessment on how its decision to freeze Local Housing Allowance and cut Universal Credit has impacted renters. During the pandemic, the Government took steps to prevent a housing debt crisis – which included the restoration of LHA rates and increasing the UC Personal Allowance. However, the number of private rented households in receipt of UC increased by almost 107 per cent between February 2020 and February 2021. Additionally, the Government confirmed that where households are struggling to make ends meet they have an average £100 per month gap between the housing support received and the rent they must pay. Read more on the NRLA website.

https://www.nrla.org.uk/news/warning-issued-over-impact-of-benefit-cuts-on-renters 

Low-Income Tenants Face 'Heat, Eat Or Pay Rent' Choices

Low-income tenants in the private rented sector face a “heat, eat or pay rent” problem because housing benefit rates have failed to keep up with the soaring cost of accommodation, a study has found. The four-year freeze on local housing allowance levels, which has been in place since April 2016, means some families must meet a shortfall of hundreds of pounds a month on their rent support, according to the Chartered Institute of Housing (CIH). It said the ongoing housing benefit freeze meant even the lowest private rents were out of reach for many low-income families in most areas – making it more likely that tenants would be forced to choose between living necessities or paying the rent. Read more on the CIH website.

http://www.cih.org/news-article/display/vpathDCR/templatedata/cih/news-article/data/Scotland/Benefit_freeze_puts_private_renting_out_of_reach_for_low-income_tenants_and_risks_fuelling_homelessness

Majority Of Charity’s Supported Housing Under Threat From LHA Cap

Analysis by Frontier Economics found that if the freeze on Local Housing Allowance (LHA) rates continues into 2020/21 and there is no top-up funding available, 91% of The Salvation Army’s homes would cost more to run than there is funding to cover them. This would mean the charity would be forced to raise income elsewhere. The Salvation Army is calling on the government to delay applying LHA rates to supported housing until April 2022 to allow time for a new solution to be found that “accurately reflects the true costs of safe and secure supported housing”, a spokesperson said. Read more on Inside Housing.

Freeze On Local Housing Allowance Rates ‘Must Be Scrapped’

The freeze on LHA rates must be scrapped to open up the private rented sector to the homeless, according to crossbench peer, Lord Best.  This year is the second year of the Government’s freeze on LHA rates. In the Summer Budget 2015 the Chancellor announced that LHA rates –  set at the 30th percentile point for local market rents – would be frozen at the 2016/17 level  for four years even if market rose over that period. This freeze also applies where housing costs are paid through Universal Credit. This has led to fears that fewer landlords will be willing to accommodate tenants on benefits – particularly against a backdrop of rising rents and increasing regulatory costs. Read more on the RLA website.

Home Group To Help Those Set To Miss Out On Right To Buy

Home Group has devised a way to help its customers overcome one of the biggest barriers to owning a place of their own – saving for a deposit while paying rent. Home Group has committed to match, pound for pound, the Government cash bonus to savers using a Help to Buy ISA to save for a mortgage deposit. In what is believed to be a sector first, Home Group will also commit to a house price inflation freeze of up to five years as customers gather a deposit to buy their home. Customers who express an intention to buy their home could also benefit from reduced rent while they are saving. Read more on the Home Group website.