NRLA’s Ben Beadle says he is troubled by the radio silence from the political parties on the the gap in LHA payments and market rents, which make just 5% of properties affordable for those on benefits.
The boss of the UK’s largest group of landlords has criticised the political parties for their ‘silence’ on one of the most pressing problems facing those both renting and managing tenancies within the sector.
Ben Beadle (main image), Chief Executive of the NRLA says the lack of debate during the election campaign about the gap between Local Housing Allowance (LHA) payments and private rents is troubling.
His organisation’s analysis of official LHA data reveals that of the 1.5 million households who rent privately and receive Universal Credit, nearly a million have to cover the shortfall between what they get in LHA via Universal Credit.
The NRLA points out that this problem, faced by so many private renters and the landlords or letting agents who manage their tenancies, has disappeared from all the political parties’ radar. Even the Labour party’s manifesto only mentions Universal Credit once and makes no reference to LHA.
FREEZE
In November last year following intense property industry lobbying, Chancellor Jeremy Hunt ‘unfroze’ the mechanism which ties LHA to rent rises, which had been static since 2020, although even now it has only been increased to the lower 30% of rents nationwide. They are due to be frozen once more next year, although Labour is likely to review this if it gain power.
According to the Institute for Fiscal Studies, the freezing of LHA rates has led to just five per cent of private rental properties being affordable for those in receipt of LHA.
BROKEN
“It is time to fix the broken housing benefit system once and for all,” says Beadle. “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.”
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