Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Landlords Face Growing Gap in Local Housing Allowance Support
Landlords are facing a widening gap between Local Housing Allowance (LHA) rates and actual rents, according to a report by Property118. Propertymark has raised concerns that this gap increases the risk of arrears and failed tenancies when benefit-receiving tenants cannot cover the full rent.
Propertymark has written to Department for Work and Pensions (DWP) minister Baroness Sherlock, urging the government to restore LHA to at least the 30th percentile of local rents and to update rates annually. The organisation highlights that current LHA rates may not be sufficient to meet rising rental costs, which could impact both landlords and tenants.
For letting agents and inventory clerks, the widening LHA gap may lead to more frequent arrears and tenancy failures, particularly in cases where tenants rely on housing benefits. The call for annual updates to LHA rates is intended to help ensure that housing support keeps pace with local market conditions.
Source: Property118