A Parliamentary report has underlined the critical connection between inadequate Local Housing Allowance (LHA) rates and the mounting risk of evictions.
The House of Commons Public Accounts Committee used crucial data from Reapit, a leading property technology provider.
Reapit’s analysis found that nearly 70% of property professionals had issued Section 21 eviction notices due to rent arrears.
It says this figure highlights the financial strain facing tenants reliant on LHA with insufficient payments creating an affordability gap.
This then leads to rent arrears, evictions and, in the worst cases, homelessness.
The realities in the PRS
The firm’s commercial director, Neil Cobbold, said: “We welcome the Public Accounts Committee’s report, and the evidence we’ve provided shows just how critical it is for the industry to engage with policymakers on this and other pressing issues.
“Having access to the relevant data can shine a light on the realities in the PRS that should drive change, such as the fact that arrears are far more likely to be the reason for a Section 21 eviction, and not ulterior motives, as some suspect.
“It’s crucial that the industry continues to work with government to drive meaningful change.”
He added: “Without significant court reforms to reduce delays in eviction cases, we feel the current Renters’ Rights Bill will make the affordability situation for tenants worse, as landlords appear to be selling in reaction to the legislation, leaving tenants with less choice and higher rents.”
More landlords are selling
Compounding the housing crisis is a dwindling supply of rental properties with Reapit’s survey finding more landlords are selling than purchasing new ones.
Just 11.9% of properties sold by landlords were acquired by other landlords, while 54.5% of landlords are exiting the market.
This shrinking supply will inevitably drive rents higher – increasing the affordability challenges for tenants.
Mr Cobbold said: “What we really need is a joined-up strategy across government departments to stabilise the PRS.
“This includes credible court reforms to restore landlord confidence, measures to bring vacant properties back into use, and ensuring housing benefit calculations reflect real-time rent prices.”
He adds: “Without these changes, tenants across the UK will continue to struggle with rising rents due to housing shortages, and landlords will shoulder increased risk from being unable to recover properties when necessary.”
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