‘Cost of housing’ crunch looms for low-income families, warns Resolution Foundation
Summary
The Resolution Foundation warns that over 1.1 million low-income families renting homes in England are facing a gap between housing support and rising rents. They urge the government to adjust the Local Housing Allowance (LHA) to match current rent prices to help families afford housing, especially with a budget decision coming soon.Key Facts
- More than 1.1 million low-income families in rented homes struggle to cover rent costs.
- Local Housing Allowance (LHA) has been kept the same in cash terms since autumn 2024, despite rent increases.
- The average weekly rent shortfall for a two-bedroom flat is £158, and over £300 in some parts of London.
- The Resolution Foundation says that most of the benefits of raising LHA go to tenants, not landlords.
- They recommend restoring an automatic yearly link between LHA rates and local rents to reduce costs for tenants.
- Changing LHA to match rents would cost £2 billion per year by 2029-30.
- The foundation suggests funding this by adjusting universal credit rules, helping those who need it most.
- The UK government plans to announce its budget on October 28; housing support decisions will be part of it.
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