On 29 August, the Chartered Institute of Housing (CIH) released a damning report on the effect of the government’s decision to freeze housing benefit rates.
Frozen in time
In 2016, the government froze Local Housing Allowance (LHA) rates which govern the amount of housing benefit people are entitled to. Housing benefit helps low-income households cover the cost of renting, but the government hasn’t increased it in line with rents since 2013.
The CIH report states that:
As a result, renters are facing gaps ranging from £25 a month on a single room in a shared home outside London to more than £260 a month on one to four-bedroom homes in some areas of London. Over 12 months, those gaps rise to £300 and £3,120 – making it increasingly likely that renters will be forced to choose between paying for basic necessities like food and heating or their rent.
And these shortfalls are not just a London issue. The Guardian reported that there are:
striking shortfalls in areas such as Greater Glasgow (£82 a week on a four-bedroom home), Bristol (£71) and southern Greater Manchester (£53).
No options
CIH chief executive Terrie Alafat stated:
We fear this policy is putting thousands of private renters on low incomes at risk of poverty and homelessness.
Evictions from private sector tenancies are now the biggest cause of homelessness in the UK. While landlords don’t have to give a reason for evicting tenants, rising rents are seen as a key driver of the problem.
Low-income households facing eviction have very few options apart from presenting as homeless at their local council. Research by Generation Rent found that:
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