Universal Credit and LHA both increased in Autumn Statement

?Sherrelle Collman, Managing Director, Caridon Landlord Solutions, comments on today's Autumn Statement delivered by the Chancellor, Jeremy Hunt.

Sherrelle Collman, Managing Director, Caridon Landlord Solutions

“Today’s announcement that Universal Credit will be increased by 6.7% and Local Housing Allowance will be increased to cover the cheapest 30% of local market rents is positive news that will make a significant difference to those tenants reliant on support.

Caridon Landlord Solutions has experienced first-hand the increasing financial strain on landlords and tenants receiving Housing Benefit or Universal Credit, exacerbated by the freeze in Local Housing Allowance (LHA) rates and subsequent inflationary pressures.

Uprating LHA rates to better align with market rent levels and increasing Universal Credit will not only help to alleviate poverty and prevent homelessness, it will provide lower-income households with access to better housing options and give those private landlords who support this sector the confidence to keep doing so.

It is, however, disappointing that more direct support for private landlords, by way of tax incentives to encourage landlords to invest or at least remain in the market, was not forthcoming. Rents are high because of the imbalance between supply and demand, and in the absence of meeting new homes targets, professional landlords are the lifeblood of the rental market and should be encouraged and supported to stay.”

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