Giving evidence to the Department for Work and Pensions’ (DWP) Commons Committee hearing, Propertymark called for greater engagement with landlords as stakeholders in the Local Housing Allowance (LHA) scheme.
Timothy Douglas, head of policy and campaigns at Propertymark, said that the LHA should track rents and aim for greater understanding of how the scheme impacts the housing sector.
Recent research by the professional body found that demand for rented property was up 24% in April 2023 compared with a year earlier, but Douglas stated that benefits were not keeping up with rising rent.
He added that supply issues, particularly around social housing stock, were putting pressure on the rental sector and pricing vulnerable tenants out of the market.
Douglas said: “The decision to phase out Mortgage Interest Relief and other unfavourable taxation policies is resulting in landlords facing unprecedented financial challenges.
“If a decision not to implement a pro-growth taxation agenda for the private rented sector is not brought forward, it will be the most vulnerable tenants who are negatively impacted, many of whom are in receipt of benefits.
“The UK Government must increase housing options for the most vulnerable by setting Local Housing Allowance at the thirtieth percentile, if not the fiftieth, and to increase this annually to keep pace with market rents.
“A change in rhetoric is also needed with policymakers viewing private landlords and letting agents as part of the solution to resolve the housing crisis.
“After pressing them to do so, we are pleased to see that the Department for Work and Pensions is now investigating ways in which it can engage with membership bodies such as Propertymark and our partnership with the Valuation Office Agency will continue to ensure that letting agents provide rental data to support rent officer valuations and housing benefits.”
