Leading organisations in the homelessness sector, including St Mungo’s, have contributed to a joint report illustrating the impact of the freeze in Local Housing Allowance (LHA) in driving people into homelessness. This report highlights the specific impacts that frozen LHA rates have on living standards, housing conditions, landlord behaviour, in addition to recovery from homelessness. LHA rates were designed to keep the cheapest 30% of properties in local areas affordable to people on lower incomes, yet now only 1.8% of rents are affordable.
Chief Executive of St Mungo’s, Emma Haddad, said:
“For the past two years, Local Housing Allowance rates have been frozen, leaving them increasingly out of step with private rents and placing growing pressure on those at the greatest risk of homelessness. During that time, rents have continued to rise across the country, undermining the very purpose of LHA: to help people on low incomes access and sustain a home in the private rented sector.
“As we point out in the report, every day our frontline teams see the severe impact of this. Rising gaps between LHA and market rents can force people out of housing that quickly becomes unaffordable, pushing people into homelessness and making it harder for them to find a home where they can rebuild their lives.
“This is clearly a big issue, and change is needed to prevent more people from being squeezed out of the private rented sector into homelessness and – at the sharpest end – onto the streets. Alongside other homelessness organisations, we are highlighting the impact of frozen LHA rates on the people we support.
Re-aligning LHA rates with local rents would help close the affordability gap, prevent homelessness before it occurs, and create more routes out of homelessness for those already experiencing it. It would give more people the chance to move successfully into more permanent accommodation and continue their journey towards recovery and independence.”
