Wednesday 18 October 2017

Warning Over Benefits Tempers Rent Settlement Optimism

Welfare reforms could leave some tenants struggling to pay higher rents once they begin rising in 2020, experts have warned, tempering some of the optimism about the recent rent deal. The announcement that social landlords will be able to raise rents by Consumer Price Index plus 1% for five years from 2020 was widely welcomed by the sector as a generous deal. However, some have warned that the forthcoming cap on benefits at Local Housing Allowance (LHA) levels, which is due to be imposed from April 2019, could create a shortfall between housing benefit and rents, leaving tenants having to cover the difference themselves. Read more on Inside Housing.

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