Think tank makes rental sector Housing Benefit plea
Summary
The Resolution Foundation says Local Housing Allowance rates have fallen well behind private rents, creating a record affordability gap for low-income renters. It argues the Government should restore the annual link between LHA support and the 30th percentile of local rents in the upcoming Budget.
Why it matters
For surveyors involved in lettings, valuation and rental market analysis, the widening gap between benefit support and market rents can affect tenant affordability, demand patterns and arrears risk. It also has implications for local housing pressure, particularly in higher-rent areas where the shortfall is most acute.
Key points
- Average LHA shortfall versus the 30th percentile rent level has reached 23.3%.
- A typical two-bedroom home is said to face a £170 per month affordability gap.
- Over 900,000 Universal Credit households are reportedly paying rents above their LHA rate by May 2026.
- The largest gaps are in London, but every English region now has at least one local authority with a £100-plus monthly shortfall.
- The Resolution Foundation wants LHA re-linked annually to local rents via the Budget.
Organisations:
Resolution Foundation, Universal Credit
Regulations:
Local Housing Allowance, Universal Credit
Locations:
Britain, England, London, Manchester, Newcastle
Read the original article
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
