NRLA Advocates for Changes to Housing Benefit Rules

The National Residential Landlords Association is urging the government to increase Universal Credit amounts to address current payment deficiencies.

Currently, 1.5 million private renters use Local Housing Allowance to help with their rent. However, 64% of these tenants are experiencing a gap between this allowance and what they must pay each month for their rent.

Ben Beadle, the chief executive of the National Residential Landlords Association, stated, “Now is the time to correct the dysfunctional housing benefit system conclusively.

“The constant halts to the support, along with uncertain future rates, are causing worry for both renters and landlords. It’s preventing them from making any long-term plans.

“Both renters and those providing housing need housing benefit rates that permanently keep pace with typical rents. Otherwise, we’re looking at the strange and unjust situation where aid does not match up with actual housing costs for those renting.”

Starting in April, the Local Housing Allowance rate is set to match the bottom 30% of market rents in a given location. Since April 2020, there has been a freeze, causing a rift between benefit rates and current market rents. The Institute for Fiscal Studies observed this freeze resulted in a mere 5% of private rental homes being affordable to those dependent on the LHA.

The Institute for Public Policy Research has issued a warning that even with an end to the LHA rate freeze, over 800,000 households on Universal Credit will still face a difference between their rent and the financial assistance they receive. And with the rates set for another freeze after April, the discrepancy between LHA rates and actual rents is expected to grow.