Leading organisationsÌýin the homelessness sector, including Âé¶¹´«Ã½â€™s,Ìýhave contributed to aÌýjointÌýreportÌýillustrating the impact of theÌýfreeze in Local Housing AllowanceÌý(LHA)Ìýin driving people into homelessness.ÌýThis report highlights the specific impacts that frozen LHA rates have on living standards,Ìýhousing conditions, landlord behaviour,Ìýin addition to recovery from homelessness.ÌýLHA rates were designed to keep the cheapest 30% of properties in local areasÌýaffordable to people on lower incomes,Ìýyet now onlyÌý1.8% of rents are affordable.Ìý
Chief Executive ofÌýÂé¶¹´«Ã½â€™s, Emma Haddad, said:ÌýÌý
“For the past two years,ÌýLocal Housing AllowanceÌýratesÌýhaveÌýbeen frozen,Ìýleaving them increasingly out of step with private rents and placing growing pressure on those at the greatest risk of homelessness.ÌýÌýDuringÌýthat time,Ìýrents have continued to riseÌýacross the country, undermining the very purpose of LHA:Ìýto help people on low incomes access and sustain a home in the private rented sector.Ìý
“As we point out in the report, every day our frontline teams see the severe impact of this.ÌýÌýRising 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.ÌýÌý
“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.Ìý
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 intoÌýmore permanentÌýaccommodation and continue their journey towards recovery and independence.”Ìý
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