LHA rates must be increased to protect private renters from ‘spiralling debt and needless evictions’ during COVID-19 outbreak, Shelter says

Recommendation responds to new polling data that estimates 1.7 million renters expect to lose their jobs in the next three months, many of whom will face large rent shortfalls without increases in universal credit LHA rates

Shelter has warned that local housing allowance (LHA) rates must be increased in order to protect private renters from ‘spiralling levels of debt and needless evictions’ during the coronavirus (COVID-19) outbreak.

A new survey of private renters in England, undertaken between 24 and 27 March 2020 on behalf of Shelter, reveals that almost one in five renters - an estimated 1.7 million adults - say they are likely to lose their job in the next three months because of the coronavirus crisis, while around two million renters (24 per cent) have already seen their incomes fall or have lost their jobs.

Highlighting that many in this group will need to claim universal credit for the first time to cover their basic living costs, Shelter warns that current LHA rates - even after being increased to the 30th percentile of local rents for 2020/2021 - will lead to those paying average rents facing a shortfall as high as £400 a month outside of London, and up to £1,227 in the capital for an average two-bedroom rental.

As a result, chief executive at Shelter Polly Neate calls for an increase to LHA rates, saying that -

‘The government has rightly suspended evictions until June, so no one has to face homelessness in the middle of this pandemic. But millions of renters will be in dire straits further down the line without more government support…

… We're facing an onslaught of people suddenly unable to afford their rent, at a time when people need to stay put and cannot safely move to a cheaper home. To avoid spiralling debt and needless evictions once the ban lifts, the government must increase the housing element of universal credit so that it covers the average cost of local rents.’

For more details see 1.7 million renters expect to lose their job in the next three months from shelter .org.uk