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Housing benefit reform creates poverty trap
10/02/2024
The government’s new housing benefit system is creating poverty traps in the outer north eastern boroughs of London, research by Shelter found. The local housing allowance (LHA), which is replacing the housing benefit in the private rented sector will leave many tenants with a significant shortfall in rent, which they will either have to find themselves, or move into poorer areas where the benefit will cover their costs. The research also found that a majority of landlords are unwilling to let properties to LHA claimants in areas they can afford. Full details in the March/April issue of ROOF, out next week.
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Bit to simplistic. The Local Housing Allowance does not create poverty traps, if there are areas of deprivation there are there anyway, Local housing allowance merely reflects local rents. If landlords not taking on tenants then more work needs to be done with landlords, money is money and it is not really the landlords business where this money comes from (as long as it comes)
In my LA the LHA is generally set at the correct levels. Landlords who have bought to let are screaming out for tenants, hence Homelessness is low and homelessness prevention is high.
Shelter should be a little more creative and take off it’s blinkers.
Posted by Graham Fearon on Tuesday 10 2009 at 01:57 PM