Capping Local Housing Allowance
Yesterday the House of Commons gave a second reading to the Welfare Benefits Uprating Bill which caps future increases to Local Housing Allowance rates at one per cent from 2014.
Richard Lambert, Chief Executive Officer, says:
“Capping future increases to Local Housing Allowance (LHA) rates to one per cent risks a decrease in real terms if, as expected, inflation exceeds this level. With time, this will inevitably render private-rented accommodation unaffordable for many tenants in receipt of housing benefit. Indeed, the cap could deter landlords from investing in much needed housing for those receiving support.”
If the Bill goes through then there are serious concerns as to how some disadvantaged people will be able to afford their much needed housing.
A survey previously carried out by Property118 reported on the Crisis survey that only 1.5% of private landlords across the UK are willing to rent to benefit claimants aged under 35.
The question as to whether the Government is taking the need for the PRS to sort out the social housing mess is constantly being asked.