Good news is few and far between when it comes to benefit tenants in the private rental sector (PRS). With benefit cuts, reduction in house building and ever greater waiting lists it hasn’t been an easy ride of recent. However a murmur of good news is always welcomed, with the news of Government plans to bridge the gap of LHA rates and areas experiencing highest rent increases. This will be funded by using the money saved through the Local Housing Allowance rate freeze of four years.
Universal Credit and tax expert Bill Irvine explains the proposals:
He said: “Most private landlords, accommodating LHA tenants, will be well aware of the fact the rates applicable to LHA tenants have been frozen at 2015 levels for a period of four years.
“The freeze was applied following George Osborne’s Summer Budget of 2015.
“This funding will be used to increase some LHA rates in certain high rent areas by three per cent starting from April 2017″.
“The bad news is, all other rates, not specifically targeted for this increase, will either remain at the April 2015 level, in line with the current LHA Freeze policy, or will be set at a rate determined by the Rent officer.
So the areas most affected by the highest rent increases will have their LHA rate increased. This increase is well overdue but the feeling it is just not enough. With the noted increase of all rents in most areas this planned strategy will be more of a stop gap rather than a longer term solution. I would like to see its effects once implemented.
All benefit increases are welcome. However it doesn’t address the fundamental requirement for more affordable housing.
