Editor's note: This brief was summarised by The Property AI Team from a report by Letting Agent Today. Read the original article for full details.
Think Tank Urges Housing Benefit Reform as LHA Shortfall Hits Record High
The Resolution Foundation has called for reform of Housing Benefit in the rental sector, according to Letting Agent Today. The think tank reports that the average shortfall between Local Housing Allowance (LHA) rates and the 30th percentile rent level has reached an all-time high of 23.3 per cent.
For a typical family in a two-bedroom home, that gap is equivalent to £170 per month, the Resolution Foundation says.
LHA rates set the level of Housing Benefit support available to renters. The think tank's findings show how far that support now sits below market rents: tenants who rely on LHA face a growing gap between the help they receive and what they need to pay.
For letting agents and inventory clerks, the figures point to pressure in the affordable end of the rental market, where affordability checks, tenancy sustainment and rent arrears risks all move with the level of benefit support relative to market rents.
The Resolution Foundation's plea adds to the ongoing debate over how Housing Benefit and LHA rates interact with the private rented sector. The full details of the think tank's position are in the original report.
Source: Letting Agent Today