Hosted by Gareth Wax and joined by myself, Hamish McLay, with regular contributors Juliet Baboolal, Chris Gilsenan and Wendy Gibson, we will be exploring what this freeze really means for renters, landlords and local authorities.
LHA was originally designed to reflect the cheapest 30 per cent of rents in each local market. That principle still makes sense, although the figures no longer do. Years of freezes mean LHA bears little resemblance to the actual cost of renting. In many areas rents have risen sharply, yet LHA has stayed still. Tenants are left to make up the difference from incomes that have not increased at the same pace.
The consequences are becoming clear. More renters are falling into arrears even when budgeting carefully. Councils are seeing higher demand for support. Temporary accommodation budgets are under intense strain, with some authorities warning that they are approaching financial breaking point. This is not a marginal issue. It is shaping the experience of thousands of households every month.
Landlords are feeling the pressure too. Rising mortgage rates, higher maintenance costs and new regulations are all adding to the financial burden. Several reforms in recent years have already encouraged many landlords to sell up or leave the sector altogether. These additional impositions are expected to increase that trend. As more properties are withdrawn from the rental market, the number of available homes drops further.
That reduction in supply has predictable effects. With fewer rental properties available and demand remaining high, rents increase again. The market tightens, choice shrinks and competition intensifies. Households relying on LHA are often the hardest hit because they are competing in a market where the support they receive no longer reflects the reality of local rents. As the gap widens, options narrow.
The social impact extends well beyond individual cases. When support does not align with real costs, lower-income households become effectively priced out of entire towns and cities. Communities lose diversity, and the private rented sector becomes less accessible. The overflow moves into the social housing system, where waiting lists have been growing for years. Councils, already stretched, are left to manage needs they do not have the resources to meet.
There is also a long-term question about sustainability. Freezing LHA may reduce direct spending for central government, yet the cost reappears through other channels. Councils pay more for temporary accommodation. Families dealing with unstable housing often require additional support from health, education and social services. The system absorbs the pressure in different ways, yet the strain remains.
This week on Property Quorum, we will look at what could realistically change. Some argue that LHA needs a full reset so rates once again reflect local market rents. Others believe that without increasing the supply of affordable homes, no adjustment will go far enough. There is also growing discussion about the level of support councils need if they are expected to manage rising demand fairly and effectively.
Join us on Thursday at 10am as we explore what may happen next, who is most affected and what the future could look like for renters, landlords and local authorities.
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