Propertymark has welcomed the UK Government’s legislation to increase the Local Housing Allowance but has urged them to go further with helping families struggling with the cost-of-living crisis.
Some of the poorest families receiving either Universal Credit or Housing Benefits are set to be £800 a year better off on average.
This measure will help 1.6 million private renters for 12 months from April 2024.
However, Propertymark will continue to urge the UK Government to raise the Local Housing Allowance level to the 50th percentile, thereby guaranteeing that tenants have broader access to suitable housing options.
Rather than being frozen in 2025, Propertymark would also like to see Local Housing Allowance increased yearly alongside market rates.
The maximum housing support for private renters is affected by the Local Housing Allowance by guaranteeing that claimants residing in the same area with similar circumstances are issued the same maximum help despite the rent that they pay. The size of their household is also an important factor that determines how much help they receive.
Local Housing Allowance has fallen behind surging rents since 2020 and priced many vulnerable tenants out of the private rental sector.
During the Autumn Statement, Chancellor Jeremy Hunt stated he will increase the Local Housing Allowance rate to the 30th percentile of local market rates.
Propertymark lobbied for a Local Housing Allowance boost, including in its Spring and Autumn Budget Representations.
