Frozen Local Housing Allowance rates are leaving older private renters struggling to cover rent and everyday essentials. Here's what landlords need to know.
For many older people renting privately in the UK, keeping up with housing costs is becoming increasingly difficult. While rents have risen, Local Housing Allowance (LHA) rates have remained frozen since April 2024, leaving some renters to cover the shortfall from their own income.
A report from charity Independent Age highlights the impact on older renters receiving Housing Benefit, with many struggling to pay their rent without cutting back on essentials.
How Is the LHA Freeze Affecting Older Renters?
Independent Age reports that:
- 69% of older renters receiving Housing Benefit do not receive enough to cover their rent.
- Two-thirds experienced a rent increase in the previous 12 months.
- Six in ten cut back on essentials to afford rent.
- 27% reduced their use of heating.
These findings show how housing costs can affect more than monthly budgets. When support falls short, some older renters face difficult choices between paying rent and meeting basic needs.
Why Does This Matter to Landlords?
LHA rates help determine the housing support available to eligible private renters. When these rates remain unchanged while rents increase, the gap between support and actual housing costs can widen.
This creates wider concerns about rental affordability and access to suitable housing, particularly for people on fixed or limited incomes.
For landlords, understanding local rental conditions and keeping track of property finances can help when making decisions about costs, rental income and longer-term investment plans.
Could LHA Rates Change?
Independent Age is calling on the government to increase LHA rates to cover at least the cheapest 30% of local rents and maintain that link annually.
With the Autumn Budget approaching, housing support remains an important issue. However, any increase will depend on the government's confirmed announcements.
What Can Landlords Do Now?
Although landlords cannot control housing policy, they can take practical steps to manage their properties effectively:
- Review rental affordability: Understand local market conditions and tenant demand.
- Track property finances: Keep rental income and expenses organised.
- Maintain compliance records: Keep important documents and certificate expiry dates accessible.
- Stay informed: Follow official announcements on housing support and rental policy.
Propell helps landlords organise property information, manage documents, track rent and receive reminders for relevant compliance dates, making it easier to keep essential information in one place.
Explore Propell: https://propell.co.uk/
Frequently Asked Questions
What is Local Housing Allowance?
LHA sets the applicable rent limits used to calculate Housing Benefit for private renters and the housing element of Universal Credit for eligible claimants. Rates vary by location and household circumstances.
Why are older renters struggling with frozen LHA rates?
Rents have continued to rise while LHA rates have remained unchanged since April 2024. As a result, some eligible renters must cover the difference from their own income.
Will LHA rates increase in the Autumn Budget?
Independent Age is calling for rates to increase and remain linked to local rents. Any changes will depend on the government's official announcements.
