HomeLatest NewsChartered Institute of Housing call to lift LHA Freeze
Chartered Institute of Housing call to lift LHA Freeze
Posted on 04/09/2018 by Sulgrave Estates
New research from the Chartered Institute of Housing (CIH) shows that more than 90% of Local Housing Allowance rates across Great Britain now fail to cover the cheapest rents.
The Institute is warning that rates have now fallen so far behind that private renting has become unaffordable for most low income tenants – putting them at risk of homelessness as they are forced to choose between basic living expenses and paying the shortfall.
The organization is now calling on the Government to review the policy and to end the freeze immediately. LHA rates are meant to cover the cheapest 30 per cent of homes in any given area, but they haven’t been increased in line with local rents since April 2013 and they remain frozen until April 2020. As a result, renters are facing gaps ranging from £25 a month on a single room in a shared home outside London to more than £260 a month on one to four-bedroom homes in some areas of the capital.
Over twelve months, those gaps rise to £300 and £3,120 – making it increasingly likely that renters will be forced to choose between paying for basic necessities like food and heating or their rent.
The Government introduced targeted affordability funding in 2014 to bridge the biggest gaps but CIH’s new report has found that its impact has been negligible, covering only a handful of the shortfalls completely.
CIH chief executive Terrie Alafat CBE said: “Our research makes it clear just how far housing benefit for private renters has failed to keep pace with even the cheapest private rents. We fear this policy is putting thousands of private renters on low incomes at risk of poverty and homelessness. We are calling on the government to conduct an immediate review and to look at ending the freeze on Local Housing Allowance.”