Housing allowances are not keeping up with rents in the private sector, new research has revealed.
Research by the Chartered Institute of Housing (CIH) has found there is a wide gap between the Local Housing Allowance (LHA) and the rent tenants pay.
CIH’s analysis, which focuses on LHA rates since 2012, reveals in some areas people are only able to rent in the bottom 5 or 10% of the private rented sector market.
However, LHA rates were introduced to give people access to 30% of the market.
CIH warns the situation will get worse because of the LHA rate freeze last month.
Terrie Alafat CBE, CIH chief executive, said: ‘We are becoming more and more concerned by the lack of correlation between LHA rates and rents, and our research shows that people are going to find it difficult to continue renting in the PRS.’
She added: ‘CIH is calling on the government to review LHA rates for all categories of accommodation, to make sure everyone is able to access a safe, affordable home.’
