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MPS have called for annual increases in housing benefit to ease the pressure on rents
Mar 22, 2024
MPS have called for annual increases in housing benefit to ease the pressure on rents London
By   Internet
  • City News
  • Housing benefit
  • rent pressure
  • UK housing market
  • UK property
Abstract: Members of Parliament have recently proposed a much-discussed recommendation to increase housing subsidies annually to ensure that they match the lowest local rent levels, covering 30% of the rent. This initiative stems from a report by the Work and Pensions Select Committee, urging the government to commit to annually adjusting the Local Housing Allowance (LHA) to maintain its ranking at the 30th percentile of rents in the wider rental market.

In recent years, frozen LHA rates have led to a 23% decrease in rents for some newly listed private rental properties on property website Zoopla. This situation has presented significant challenges for both tenants and landlords. The CEO of the National Residential Landlords Association (NRLA), Ben Beadle, welcomed the committee's call and emphasized the need to review housing benefit rates based on local housing costs. He stressed that the housing benefit system should be a stable safety net rather than a source of concern for tenants and landlords.


MPS have called for annual increases in housing benefit to ease the pressure on rents

propertywire


Starting this April, housing benefits will once again cover a minimum of 30% of rents in any area. However, the Institute for Public Policy Research warns that even without freezing, over 800,000 households will continue to face discrepancies between housing subsidies and rents. Currently, the housing allowance scheme is set to freeze again next year, causing concern and anxiety for many families.


This proposal has garnered support and calls from various quarters. It is widely believed that providing certainty for welfare-dependent individuals is crucial, and the government should ensure that housing subsidies are adjusted to match market rents, ensuring they can access reasonable housing conditions. Despite challenges and gaps, continuous review and adjustment of housing subsidy policies can provide better housing support for more families, promoting social stability and development. This initiative is expected to bring tangible welfare benefits to a wide range of tenants and landlords, positively impacting society as a whole.

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MPS have called for annual increases in housing benefit to ease the pressure on rents
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