Liz Kendall, Secretary of State for Work and Pensions confirmed that a freeze of local housing allowance rates will last until at least April 2026.

The LHA is used to determine how much Housing Benefit and Universal Credit claimants can receive to cover their housing costs. 

LHA is based on the 30th percentile of rents in a given area, as determined by a survey of rents had been frozen for four years, from September 2019 to April 2024, but was increased on April 1, 2024. The increase was intended to help people afford the bottom 30% of rental properties in their area

Many have been surprised by the Labour minister’s controversial stance and are worried that rapidly rising rents will mean that the new freeze will be even more damaging

Chris Norris, NRLA Policy Director stated:

Whilst the Budget spoke about protecting vulnerable people, it failed to confirm what we now know – that housing benefit rates will be frozen as of next year. It makes no sense whatsoever to provide support for housing costs that bear no resemblance to rents as they actually are. This announcement will make it hardest of all for those claiming benefits to access and sustain tenancies in the rented sector.He added - Coupled with tax hikes on the supply of homes to rent, the announcement will make it hardest of all for those claiming benefits to access and sustain tenancies in the rented sector

A government spokesperson stated:

We are committed to the biggest increase in affordable housing in a generation, and to ensuring our social security system is fair and sustainable  - adding that Local Housing Allowance rates were increased earlier this year, worth an additional £800 on average to low-income households, and we have announced £1bn to support low-income families through the Household Support Fund and Discretionary Housing Payments.

For more info on current LHA rates  (England, Scotland & Wales) visit: https://www.gov.uk/government/publications/universal-credit-local-housing-allowance-rates-2024-to-2025

The UK Right 2 Rent Register

 www.theukright2rentregister.org
https://www.facebook.com/theukright2rentregister/