Local Housing Allowance (LHA) rates will be refrozen from April despite a predicted increase in unemployment to 2.6 million next year.
A report by spending watchdog the Office for Budget Responsibility (OBR), issued as part of spending review documents published yesterday, revealed that the government has opted that LHA rates will be frozen in cash terms from 2021/22 onwards.
This means that the rate will fall below the current level which is set to cover the lowest 30% of rents in any given area, which is obviously bad news for private renters relying on benefits to help with their housing costs as they will see a growing shortfall in their income against rent.
The decision to freeze LHA has been criticised by the National Residential Landlords Association (NRLA), which says that both renters and landlords will struggle with the consequence of rent arrears through no fault of their own in light of rising unemployment.
Ben Beadle, chief executive of the NRLA, said: “Many renters and landlords are struggling with the consequence of rent arrears through no fault of their own yet the Government is failing to take the action needed to address this.
“Whilst the chancellor has spoken about the need to support those who find themselves homeless, it would be much better for all concerned to provide the funds needed to sustain tenancies in the first place.”
All twaddle when income changes tenants need to adjust their domestic circumstances.
TOUGH if it causes upset.
Nobody has the right to live where they want irrespective of whether they have resided in the area for a long or short time.
If income reduces MOVE to where your reduced income can afford for you to live.
There are too many welfare scroungers who believe welfare should maintain them in the style they are accustomed to.
Even as it is welfare is in the upper 25% of income earners.
Tough economic circumstances must inevitably mean people must change their domestic circumstances.
Income reduction will invariably result in domestic upheaval.
LL are simply NOT prepared to offer their properties at LHA rates which are well below market rates especially in the SE.
Move up North where LHA matches market rents.
It is obvious that the SE being a high demand area will be impossible for LHA to match market rates.
But of course it hasn’t been mentioned that welfare scroungers who bother to do 16hrs work per week can avoid the OBC and have all market rent paid.
Welfare provides a rather nice lifestyle with all the free stuff possible.
LL will not be subsidising the feckless welfare scroungers.
Time for tenants to vacate and move to where they can afford.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
:O – Blimey – that’s a bit on the nose for an early morning.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Yep reality isn’t very pleasant. There will be many waking up to their new paradigm. LL certainly won’t be wishing to house those who cannot for WHATEVER reason pay a market rent the LL requires. Best they vacate to leave rental properties available for those than are able or choose to be able to afford their current domestic circumstances.
But of course feckless tenants won’t vacate.
They will game the system and wait until evicted.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register