New calls to raise Local Housing Allowance in-line with inflation to help private tenants with cost of living
A new online petition is calling on Local Housing Allowance rates to rise in-line with the current rate of inflation. The latest figures from the Office for National Statistics show that Consumer Prices Index inflation fell to 10.1 per cent in March from 10.4 per cent in February.
Local Housing Allowance was introduced in 2008 to provide Housing Benefit entitlement for tenants renting private-sector accommodation in Scotland, England, and Wales. Its introduction meant significant changes to the way Housing Benefit levels were calculated and how benefit was paid. LHA rates relate to the area in which the Housing Benefit claim is made. These areas are called ‘Broad Rental Market Areas’, defined as ‘where a person could reasonably be expected to live taking into account access to facilities and services’, and a selection of rents in the area are used to determine the LHA for each category of housing in the area.
It adds: “Many landlords have had to increase rents to cover the increases in their mortgages, causing instability for both the tenants and landlord.
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