Leading industry body, Propertymark, has urged the UK Government to do more to help people in receipt of benefits access housing in the Private Rented Sector (PRS).
The call to action was made during a submission to the House of Commons Work and Pensions Committee, which is currently conducting an inquiry into benefit levels in the UK.
Propertymark highlighted the unfortunate reality that many people receiving benefits are excluded from some housing options due to the inadequacy of Local Housing Allowance (LHA) rates, which have been frozen since 2020 and have failed to keep pace with market rents.
Drawing on research by the Bevan Foundation in Wales and Centrepoint in England, Propertymark underscored the significant disparity between LHA levels and market rents. The industry body reiterated its call for the LHA to be pegged at the thirtieth percentile, if not the fiftieth, and to be annually adjusted to align with market rents.
In addition, Propertymark suggested that the reform of Broad Rental Market Areas (BRMAs) could more accurately reflect local rental areas. The body also emphasised the important role letting agents could play in enhancing the collection of rental data from the Valuation Office Agency (VOA), which informs government statistics and insights such as LHA levels.
On the topic of Universal Credit (UC), Propertymark expressed concerns over the debt accrued by some tenants while waiting for initial payments during the first five weeks. The industry body recommended a review of the waiting period at the beginning of a claim, transforming UC advances into grants rather than loans, and making direct payment of the housing benefit element of UC to landlords the default option.
Propertymark also suggested a temporary suspension of the Shared Accommodation Rate in light of the current cost-of-living crisis and highlighted the impact of the Benefit Cap on large families, especially in high-rent areas such as London.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “We have called on the UK Government time and time again to end the freeze on LHA rates and improve how Universal Credit operates in order to help its recipients’ ability to obtain good quality and well managed housing.
“We hope the influential Work and Pensions Committee can also add its weight to the issue and force the UK Government to address these urgent issues and reengage with stakeholders representing the private rented sector as a priority.”
