The cheapest private rental homes are still out of reach for people on low incomes according to new research.
LHA rates were frozen for four years in 2016 and the CIH is now calling on the government to review the policy and end the freeze immediately, with rates falling so far behind that even the cheapest rents are now unaffordable for most low income tenants, putting them at risk of homelessness.
— Chartered Institute of Housing (@CIHhousing) August 29, 2018
The rates were designed to cover the cheapest 30 per cent of homes in any given area, but haven’t been increased in line with local rents since April 2013, and will remain frozen until April 2020.
The report found that as a result of the freeze renters are facing rent gaps ranging from £25 a month on a single room in a share home outside London to more than £260 a month on one to four-bedroom homes in some areas of London.