NRLA urges Government to end LHA freeze

0:02 AM, 12th October 2023, About A year ago 7

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The National Residential Landlords Association (NRLA) has called on the Government to lift the freeze on housing benefit rates, which it says is a ‘travesty’ that harms tenants and landlords.

The NRLA made the plea at a Labour Party conference event, where it also highlighted the need for more investment in private rented homes.

The local housing allowance (LHA) freeze, which has been in place for three years, means that benefit payments are based on rents from 2020, not 2023.

This has made it increasingly difficult for benefit claimants to afford rental properties, as only 5% of them are within their budget, according to the Institute for Fiscal Studies (IFS).

‘The importance of the private rented sector’

The NRLA’s policy director, Chris Norris, said: “We welcome the recognition from all the panellists of the importance of the private rented sector.

“If they win power, Labour will need to tackle fundamental challenges in the rental market.

“It will need to tackle the chronic lack of private rented homes which is making it harder and harder for renters to find anywhere to live.”

He added: “The unjust housing benefit freeze will need to be scrapped. And a future Labour Government will need to do more to root out those landlords providing unsafe housing and bringing the sector into disrepute.

“None of this will be easy, but we stand ready to work constructively with the party to secure a rental market that works for tenants and responsible landlords.”

LHA freeze was ‘completely unworkable’

Mr Norris also said that the LHA freeze was ‘completely unworkable’ and argued that it was a ‘brake on social mobility, a brake on access [to rented housing] and a brake on investment’ in new homes to rent.

He urged the Government to unfreeze housing benefit rates as soon as possible, to prevent more tenants from being excluded from the housing market.

Mr Norris also spoke of the challenges facing the private rented sector, which he said had a ‘vital role’ to play in providing housing for millions of people.

He also criticised the lack of government policy to encourage more landlords to invest in quality rental homes, which he said had left tenants with no choice over where they live.

He added that this made them vulnerable to the minority of landlords who provide sub-standard housing.

The fringe event organised by DEMOS and sponsored by the NRLA can be viewed below:

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Tags: DEMOS, Housing benefit, Housing benefit rates UK, labour party, landlords PRS, LHA, LHA freeze, Local housing allowance 2023, National Residential Landlords Association, NRLA, Private Rented Sector

Comments

C-cider

9:57 AM, 12th October 2023, About A year ago

The country is broke and already spends around £30 billion per year on Housing Benefit.
That is not sustainable.
With around 2.7 million claimants that’s an average cost of over £10,000 per year per claimant.
Too many people are claiming. Some ‘couples’ choose to live in separate properties and both claim HB. Some both claim disability benefits and have a mobility care each. They claim far more by living separately than if they lived together.
Also, the BRMA areas are too broad. LHA was set at the 30th percentile but what happens is that rents in crappiest houses in the crappiest areas of the BRMA default to LHA rates. This means that no rents fall below the 30th percentile and rent increases become a bit of a self-licking lolly.
The system needs reform. At the moment, everybody is too frightened of being accused of discrimination (just as those calling for a stop to the boats are labelled racist).
I don’t think we’ll see real change until the U.K. is bankrupt and begging the EMF to bail us out. It’s ok, Labour have the application forms already after the Conservative's ‘spend for growth’ plan brought the country to its knees in the 1970s.
Of course, all that was 60 years ago and so the pain will have been forgotten.

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TheMaluka

10:53 AM, 12th October 2023, About A year ago

Reply to the comment left by C-cider at 12/10/2023 - 09:57
The level of Housing Benefit no longer affects me as all my properties are too expensive for benefit tenants and I am so pleased. The working tenants I now house give me no problems whereas the benefit tenants I used to house were a nighmare.
PS love the concept of a self licking lolly.

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michael caffyn parsons

12:02 PM, 12th October 2023, About A year ago

Absolutely homelessness in my local cities seem to be getting huge. Imagine how bankrupt the UK will be when Sir Kier gets going

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The Forever Tenant

14:44 PM, 12th October 2023, About A year ago

I think one of the concerns of mine is if they took off the freeze, would we see a situation like when they removed stamp duty for the majority of house sales a couple of years back.

Basically, would it be seen that the rents are increased by the amount that LHA goes up leaving tenants in the exact same position.

As much as it is horrible that the country has to pay the large amount of LHA that it does, one of the big issues is that rents are too high and salaries too low for a lot of people to be able to cover the rents all by themselves.

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Mick Roberts

17:06 PM, 14th October 2023, About A year ago

Someone needs to do the sums on how much it's cost in homeless.

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TheMaluka

17:37 PM, 14th October 2023, About A year ago

Reply to the comment left by Mick Roberts at 14/10/2023 - 17:06
Diane Abbott?

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Mick Roberts

12:12 PM, 15th October 2023, About A year ago

Reply to the comment left by TheMaluka at 14/10/2023 - 17:37
Ha ha yes, can u remember when Thérèse Coffey was DWP Minister, she don't even work out how much people needed to earn on the taper with UC etc. Shocking how little these MP's know & get moved again the roles.
Meanwhile, I'm here 26 years later same role, same tenant in same home 26 years later, & same house still there 26 years later. We know what works & what doesn't.

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NRLA urges Government to end LHA freeze

‘The importance of the private rented sector’