The NRLA has slammed politicians in all major parties for their silence on one of the biggest issues for the private rental sector.
It says millions of people living and working in the private rented sector face chronic uncertainty due to a lack of clarity on housing benefit rates.
Over 1.5m households renting privately in Britain receive Universal Credit with support for their housing costs, known as the Local Housing Allowance (LHA), included.
However, an analysis of government data by the National Residential Landlords Association suggests that, of this group, two-thirds (65 per cent, nearly one million households) experience a shortfall between their LHA payment and their monthly rent.
In April 2024 the LHA rate was once again pegged to the lowest 30 per cent of rents in any given area. This followed a freeze introduced in April 2020 which had caused benefit rates to be detached from market rents. According to the Institute for Fiscal Studies, this led to just five per cent of private rental properties being affordable for those in receipt of LHA.
Since then, the Institute for Public Policy Research has warned that even with the LHA rate unfrozen, over 800,000 households on Universal Credit will continue to face shortfalls between their housing support payment and the rent they pay. The picture is set to worsen given that LHA rates are due to be frozen from April 2025.
None of the main parties’ manifestos has pledged to permanently link housing benefit rates to the bottom 30 per cent of rents for the duration of the next Parliament.
Failing to do so means they have ignored recommendations made by the cross-party Work and Pensions Select Committee, and leaves those living and working in the private rented sector struggling to plan for the future, claims the association.
Ben Beadle, Chief Executive of the National Residential Landlords Association, says: “It is time to fix the broken housing benefit system once and for all.
“The lack of clarity about support in the future is causing insecurity and anxiety for renters and landlords alike. It undermines efforts to sustain tenancies and prevent homelessness in the first place.
“The lack of any pledges to address this issue by the main parties is unacceptable. The next government must confirm that housing benefit rates will permanently track market rents. This would provide the assurances needed that support would keep pace with the cost of housing.”
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Has anyone noticed in their area how aggressive fire brigades are becoming? I oen several properties with two flats (one on each floor) that share a main door to the street, opening to a shared lobby approximately a meter square. The individual flats have their entry doors (fire rated) off this lobby. I am being threatened with legal action due to my fire risk assessment and safety plan for the "common areas" of the property. (Literally a square meter lobby!) not being signed off by one of their approved first safety consultants. A property with a slightly bigger lobby resulted in a thhreat of legal notice being served on me because a tenant's bike was in the lobby, blocking (his own) fire exit route. "Keep this area clear" notices were deemed inadequate as I couldn't prove i policed the route regularly. In nearly 40 years asca private landlord I have never had a fire in any of my properties. I've tried to comply with the increasing legislation, rules and regulations and generally have good relationships with my tenants, dome of which have lived in my properties gor many years. However targeting of landlords is now getting ridiculous. The tenant who leaves his bike in the lobby is now on written warnings and faces eviction if he does it again. He's lived in this flat since 1986.
Just as a gentle heads up …. If Labour DO ban s21 on day one, how will you evict him 🤷♂️. Have you already issued a notice?
I remember the days when the guy upstairs would have had a chat with the guy downstairs, probably over a cup of tea or a pint, and they'd work out the best solution between them. And then everyone could get on with their lives, and drink more pints.
Now, it all needs to be threats and litigation.
Any wonder why society has broken down like it has? Are any political parties offering to reverse this moral and societal decline or are they wanting to pour petrol on the already burning embers?
Interesting, I wonder if they visit social housing and do the same. I'm just glad I got rid of my flat and HMO's as they do come with extra issues compared with single lets in freehold houses, possibly lower yield but much less hassle.
Things like this are going to be a concern. When Labour ban Section 21 Section 8 needs to be strengthened for non compliant tenants. A blanket ban on Section 21 is going to cause so many problems if not thought through properly.
I agree Margaret, also would not surprise me if there is a spate of illegal evictions by desperate landlords mortgaged to the hilt.
yes Richard when it comes to it there will be illegal evictions as there used to be
When Kier Starmer , was debating with Sunak the other Night He mentioned Councils were facing massive unaffordable bills for temporary accommodation due to tenants evicted by no fault evictions .
Will the Councils have a duty to house people when a fault is will all ways be involved .
The councils currently have nowhere to house people.... When more landlords quit they will have even more people to house.
B&B houses and tents?
I think that the government are implementing laws to get votes and local councils are trying to make ends meet by persecuting landlords with selective licencing, which is driving rents higher as landlords sell up due to more legislation.
I'm currently at a cross road and dont know which way to go.
Do I sell now, while I still can or hold on to the houses and hope that 1 day the government will realize how many more people they will make homeless?
I guess if landlord is selling or moving back in, that's not the tenants fault? So councils will be supposed to help.
Bungling Boy Beadle batting for tenants again. Has he forgotten what the R and L stand for in the organisation? 🤔
I am fortunate in that my properties do not attract benefit tenants.👍
Nor do mine, as I make it abundantly clear I am looking for someone else. Aka… a Gold plus tenant with a proven PAYE job who’s credit score exceeds my own. Anyone else…. Another landlord out there may help you 🤷♂️
Beadles About Slamming Parties. The only thing that needs Slamming is him for dereliction of duty towards Landlords.
I have been a member of NRLA for 2 years now.
I get their newsletter like clockwork. But most concerning is that Beadle and Co keep making decisions and supporting whatever cause they want to, WITHOUT asking us Landlords.
It's like he wants us to keep paying to the NRLA, but have absolutely no say in what we expect from them.
He is actually acting exactly like a Politician. Once you are in, you just ignore the plebs that pay your wages.
If Ben really cares for the people that pay his wages, then he needs to start sending us polls as to what we want. I honestly think if there was another Association that acted on its members wishes, the NRLA would cease to be.
So Ben if you read these comments here, when are you going to give us a part in your policy/decision making?
Most members I would say are not as active as we are in here, they just pay, because, they always have 🤔🫣
My membership ends in December. It will not be renewed.
My membership ends in October and will nto renew. I have already told them last October. They have sent me views/survey to complete and asking a lot of detailed questions of whether I am selling my proeprties, reasons, about the RRB, about the NRLA membership etc. I have given my views. Some people have said that they would not complete this form as they do not want to be in the radar. I am all for letting even the government know that our personal properties should not be trampled upon by non paying tenants, or who cause anti-behavioural issues, like sub-letting etc.
Abolition of S21 will be very serious issues for landlords, especially if lumbered with rogue tenants. Labour does not care for landlords or tenants, just a short term gain to Labour party to make sure renters stay in the properties,. The good tenants may not get accomodation at the expense of bad tenants hogging the properties they cannot pay or cause problems, like sub-letting (may be difficult to prove).
I am selling some properties but I believe it may be sold to the investors. There will be some investors, like some families buying together. They have never come across Landlord Today, not member of NRLA etc. I understand there are a few landlords who are and will continue to purchase for their children. They do not wish to know. They still believe in great profits. In London, it is different as the returns are not so good.
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