‘Cost of housing’ crunch looms for low-income families, warns Resolution Foundation
Source: The Guardian ·
Thinktank calls on chancellor to end housing allowance freeze with typical two-bedroom household facing £158 week shortfall amid rent risesMore than 1.1 million low-income families in rented homes face a “cost of housing” crunch without action from John Healey in next month’s budget, the Resolution Foundation thinktank has warned.Local housing allowance (LHA) has been frozen in cash terms since…
From the source
More than 1.1 million low-income families in rented homes face a “cost of housing” crunch without action from John Healey in next month’s budget, the Resolution Foundation thinktank has warned. Local housing allowance (LHA) has been frozen in cash terms since autumn 2024. In a new report, Saving Private Renters, the thinktank found that rising rents since then have led to a widening gap between what families claiming LHA can afford, and the realities of the market. It said a low-income family renting a typical two-bedroom flat now faces an average shortfall of £158 a week. That rises to more than £300 a week in parts of London. The Resolution Foundation rejects the suggestion that relinking LHA with local conditions would mainly benefit private landlords, by driving up rents. By analysing previous changes in LHA, it finds that 90p of every £1 tends to fall to tenants, instead of feeding through into price changes. Resolution Foundation economist Stephen Hunsaker said: “The gap…
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