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Labour's LHA rate freeze will 'hit the most vulnerable tenants', NRLA says

Landlord organization NRLA claims the local housing allowance rate (LHA) freeze announced this week outside the Budget will hit some of the most vulnerable tenants.

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Chris Norris, director of policy at the NRLA, said: “While the budget did mention protections for vulnerable people, we could not confirm what we currently know – that housing benefit rates will be frozen from next year. ” he said.

“It makes no sense to support housing costs that have no resemblance to rent.

Today's announcement will make it more difficult than anything else for people claiming benefits to access the rental sector and keep their tenancies. ”

chris norris
Chris Norris, Policy Director, NRLA

“Coupled with an increase in taxes on the supply of rental housing, today’s announcements will make it more difficult than anything else for people claiming benefits to access the rental sector and keep their tenancies.”

As reported by The Neg, there is no discussion on the disparity between Local Housing Allowance (LHA) payments and private rents, even after Jeremy Hunt “unfreezes” interest rates in 2023. “is a problem,” the NRLA said.

At the time, the private rental market had grown to the point where there were no affordable properties for low-income residents in certain parts of the country.

Many commentators are surprised by Labour's controversial stance and fear that rapid rises in rents will make the new freeze even more damaging. That's why the NRLA has called on the government to “ensure that housing benefit rates permanently track market rents”.


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