The freeze on housing benefit must be lifted immediately, demand leaders from the National Residential Landlords Association (NRLA). The association has raised alarms about the ongoing cap on housing benefit rates, labelling it “completely unworkable.”
NRLA policy director Chris Norris voiced these concerns during a fringe event at the Labour Party conference, co-hosted with think tank DEMOS.
Hindrance to Social Mobility
Norris emphasized that the current freeze is a severe hindrance to social mobility, access to rented housing, and investment in new rental properties. He pointed out that the housing benefit rates, now frozen for the third consecutive year, are based on rental prices from three years ago, a disparity that has left many tenants struggling.
According to the Institute for Fiscal Studies (IFS), only 5% of rental properties listed on Zoopla are affordable for those receiving housing benefits.
Government Policy Failure
Norris criticized the government’s failure to foster investment in the private rental sector, claiming it leaves tenants with limited choices and unable to avoid sub-standard housing. “This policy has let tenants down,” he said, stressing the need for change.
Shortage of Rental Homes
“If Labour comes into power, it must address the fundamental challenges in the rental market,” Norris stated. “The chronic shortage of private rented homes is making it increasingly difficult for renters to find suitable accommodation. The unjust housing benefit freeze must be scrapped.”
A Vital Sector
Stephen Cowan, leader of Hammersmith and Fulham Council, echoed Norris’s sentiments during the event. Cowan, who is leading an independent review of the private rented sector for Labour, highlighted the essential role the rented sector plays. He underscored that the challenges faced by the sector can only be mitigated by increasing the housing supply.
As the debate over housing policy intensifies, the call from landlord leaders to end the benefit freeze adds another layer of urgency to the ongoing discussion on rental market reforms.