The National Residential Landlords Association (NRLA) is backing proposals by MPs on the Work and Pensions Select Committee for housing benefit rates to be uprated on an annual basis.
Chief Executive of the NRLA Ben Beadle said: “We welcome the committee’s call for housing benefit rates to be reviewed annually in line with housing costs. This has been a longstanding call by the NRLA and others.
“Too often the housing benefit system has left tenants and responsible landlords not knowing if rents can be covered from one year to the next. What should be a safety net has become a source of frustration and anxiety.
Beadle insisted that all parties needed to provide certainty for those reliant on benefits that they can keep a roof over their heads by ensuring rates permanently remained linked to market rents.
In its report on 21 March on benefit levels, the Work and Pensions Select Committee has argued that: “The Government should make a commitment to uprate annually Local Housing Allowance (LHA) so that it retains its value at the 30th percentile of rents in a Broad Rental Market Area (BRMA).”
LHA rates have been frozen since April 2020. The Institute for Fiscal Studies has noted that since then, the proportion of new private rental properties listed on Zoopla affordable for those in receipt of the LHA has fallen from 23%A| to just 5%.
From April this year the LHA rate will once again cover the bottom 30% of rents in any given area. However, the Institute for Public Policy Research has warned that even when the rate is unfrozen, over 800,000 households on universal credit will continue to face shortfalls between their housing support payment and the rents they pay.
At present, housing benefit rates are set to be frozen again from next year.
