Chancellor urged to unfreeze housing benefits ‘without delay’

The National Residential Landlords Association (NRLA) is calling on the government to unfreeze housing benefits rates to provide tenants and landlords with the security that rents can be paid, amidst the cost-of-living crisis.

The NRLA estimates that more than 820,000 private rented households in Britain are currently experiencing a shortfall between their housing benefit payment and their monthly rents.

This is based on official data showing that of all private rented households in receipt of the Local Housing Allowance over half, 57%, have a shortfall.

Regionally, the proportion of private rented households affected ranges from almost 41 per cent in London, although it is important to recognise that this is based on a much higher number of claimants, through to 69% in Wales.

The figures come as the Office for Budget Responsibility (OBR) has warned that housing-related benefits spending is expected to rise by just 0.1% of GDP by 2025 – five years on from the start of the pandemic and the recession it caused.

The OBR notes that this is the smallest increase seen in any of the four recessions seen since the early 1980s.

Despite private rents increasing by less than inflation, the NRLA is warning that vulnerable renters face a perfect cost of living storm. It is being worsened by housing benefit rates having been frozen since April 2021, rising energy and food prices and a chronic shortage of private rented housing which is set to drive up rents.

Ben Beadle, chief executive of the NRLA, said: “Vulnerable renters are facing a perfect storm of rising costs matched by a benefits system that is failing to keep up.

“Whilst the chancellor’s one-off pots of money to support households are welcome, these cannot be used to hide the deficiencies of the benefits system. Landlords and tenants are dismayed at the Government’s chronic inaction to make the changes they desperately need.

“With inflation soaring we cannot wait any longer. The chancellor needs to do the right and logical thing by unfreezing housing benefits without delay.”

SOURCE: Property Industry Eye | JUNE 9, 2022 | MARC DA SILVA