Posted 16.05.16
Tenants face an increasingly widening gap between the Local Housing Allowance (LHA) they receive to help with their housing costs and the actual rent they pay, new Chartered Institute of Housing (CIH) research has found.
Analysis conducted by CIH - focusing on LHA rates since 2012 - found that in some areas of the UK, people are only able to afford to rent in the bottom 5% to 10% of the private rented sector (PRS) market. However, the LHA rates were originally intended to ensure that people could access 30% of the market. The situation is set to worsen as LHA rates freeze for four years from April 2016.
The cash shortfall affects tenants across the UK, the study has found:
CIH chief executive Terrie Alafat CBE said:
"We are becoming more and more concerned by the lack of correlation between LHA rates and rents, and our research shows that people are going to find it difficult to continue renting in the PRS.
"CIH is calling on the Government to review LHA rates for all categories of accommodation, to make sure everyone is able to access a safe, affordable home."
