A million tenants ‘at mercy of rental market’ says charity
Summary
Citizens Advice is urging the government to unfreeze Local Housing Allowance, arguing that around a million private renters on benefits are facing a widening gap between housing benefit and market rents. The charity says the allowance has fallen behind recent rent increases, leaving low-income tenants with insufficient support and greater financial pressure.
Why it matters
Changes to Local Housing Allowance affect affordability for private tenants and can influence rent arrears, tenancy sustainability and demand pressures in the lower end of the market. Surveyors advising landlords, lenders or investors should be aware of the potential policy response and its implications for rental income and tenant affordability.
Key points
- Citizens Advice says about a million private renters on housing benefit face a shortfall between benefit and rent.
- The Local Housing Allowance has been frozen for much of the past decade and was last uprated in April 2024.
- The charity says rents have risen faster than support levels, especially since September 2023 data was used.
- It is calling on the government to act in the upcoming Budget.
- Independent Age has also recently called for the allowance to be unfrozen.
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