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It was lovely to see many members, old and new, at our General Speaker Meeting this week.
Thank you to Phil Keddie, Expert Property Consultant for a brilliant run down of the decisions and plans that landlords should perhaps be making.
And thank you again to our regular speakers, Ian Pring and Sean Bolter of Westcotts Chartered Accountants. A thorough delve into tax changes for landlords is always a popular subject, keeping our members very much on the ball.
If anyone missed the meeting, we can share our speakers presentation please contact the office.
New proposed amendments to the Renters (Reform) Bill have been revealed. The amendments appear to be sensible solutions to a few sticking points in the original Bill.
The Government is planning to table a series of amendments to the Bill, including:
We hope that the Government press ahead this side of the general election as any further delays could derail plans by this administration, possibly having serious implications to the Private rented Sector.
MPs return from their Easter recess on 15th April.
You can follow the Renters (Reform) Bill’s progress here; https://bills.parliament.uk/bills/3462
ESTABLISH AN INITIAL SIX-MONTH TENANCY
This balances protecting landlords’ investment, alongside ensuring tenants can still leave a property after six months if circumstances change. In effect, it creates a default fixed term of six months in all contracts and mirrors a standard break clause in many existing contracts. We are considering exemptions, such as the death of a tenant, domestic abuse, or significant hazards in the property.
REQUIRE AN ASSESSMENT OF THE COUNTY COURT POSSESSION SYSTEM BEFORE ABOLISHING SECTION 21
The Government has been clear that section 21 will be abolished when the courts are ready. We are taking significant steps to deliver court improvement, including providing £1.2m for court digitisation. We will now also bring forward an amendment to require the Lord Chancellor to publish an assessment on barriers to possession and the readiness of the courts in advance of abolishing section 21 for existing tenancies.
UNDERTAKE A REVIEW OF COUNCIL LICENSING SCHEMES
With the introduction of the new Property Portal, some landlord groups have sought reassurance that this will not duplicate the existing licensing system. We will therefore conduct a review of licensing in light of our rental reforms, to reduce burdens on landlords. This review will cover both selective licensing and licensing of HMOs.
ENSURE THE STUDENT MARKET CONTINUES TO WORK
At the Commons Committee stage, we introduced a new mandatory possession ground to facilitate student lets, allowing landlords to evict students living together in a house of multiple occupation (HMO). We have heard concerns about student households that do not meet the HMO definition. We will broaden this ground – ensuring it applies to any property that is let by students, as long as landlords give prior notice to the tenants at the start of the tenancy that the ground will apply. This aims to further protect the student market and the supply of student housing.
PROTECT THE BALANCE OF LONGER AND SHORTER-TERM LETS IN LOCAL AREAS
The Bill currently prevents landlords from marketing or re-letting properties for three months after using possession grounds to move into or sell their property. We will bring forward an amendment to close a loophole, ensuring landlords cannot turn properties into short-term lets during this period.
EXPAND HOMELESSNESS PREVENTION DUTIES
We will bring forward an amendment to give vulnerable tenants certainty that a prevention duty would be owed when they are served with a valid Section 8 notice. This will mean any household served with an eviction notice can access support from their council to help prevent homelessness.
COMMIT TO A REVIEW OF THE IMPLEMENTATION OF TENANCY MEASURE WITHIN THE BILL
The Government will introduce an amendment that requires the Secretary of State to lay a statement covering the effectiveness of new possession grounds, and the effect of moving to periodic tenancies and abolishing fixed terms. This will be published within 18 months of the measures being applied to existing tenancies – following an independent review of the new system.
COMMIT IN LEGISLATION TO PUBLISH AN ANNUAL PARLIAMENTARY UPDATE ON THE STATE OF THE PRS
This will include data on the supply, size and location of properties and will be laid before Parliament in the form of a written statement.
Homes in England with no residents will attract a council tax premium of up to 100% from 01 April as tax reforms aimed at supporting people in areas where empty properties prevent them from finding affordable housing come into force.
Changes brought in by the Levelling Up and Regeneration Act 2023 reduce the time before a property is considered an empty home from two years to one year, meaning that homes that have been empty for one year will be subject to a 100% council tax premium.
The Act also introduced a council tax premium of 100% for substantially furnished homes that are not someone’s sole or main residence, but because councils must determine at least one year in advance of introducing a second homes premium, the earliest a council can utilise the second homes premium is April 2025.
A range of exemptions will apply
Properties undergoing major repairs or structural alterations will have a 12-month exception from the empty homes’ premium.
Properties being actively marketed for sale or let will have a 12-month exception from the empty homes’ premium. This will provide protections for landlords whose rental property may become empty in between lets or have a gap between tenancy agreements. It also covers properties where an offer to rent has been accepted but the tenant is not yet entitled to occupy the property because the tenancy has not yet started. The exception can also be used where the sale is taking time to complete because it is part of a chain.
Inherited properties will have a 12-month exception after probate or letters of administration have been granted. Where there are cases that merit a longer exception period, or a higher level of discount, councils can continue to exercise their discretion.
Article Abridged from Propertymark
Double tax on empty homes takes effect on 1 April 2024 | Propertymark
Wednesday 17th April 2024 – Future Inn Plymouth – 7.30pm start – Members & their guests welcome.
Plymouth Energy Community (PEC) is an award-winning local charity with 10 years of experience supporting households in Plymouth. Its Future Fit team is working in partnership with Plymouth City Council to help homeowners improve the energy efficiency of their properties through the Government-funded Home Upgrade Grant (HUG2).
Am I eligible?
HUG2 provides funding towards the cost of upgrades for landlords that meet the following criteria:
What upgrades can I have?
Every home is different, but potential improvements may include:
What are the benefits?
Improving the energy efficiency of your properties can:
How do I access the grant?
Contact PEC’s Advisors who can assess your eligibility and explain the process – 01752 477990 futurefit@plymouthenergycommunity.com
You can also assess your eligibility for this, and other grant schemes using our online tool at plymouthenergycommunity.com/future-fit
If you have a property outside of Plymouth please contact the relevant Local Authority for more information.
Teignbridge is hosting the following event jointly with East Devon District Council, Exeter City Council and Mid Devon District Council. SWLA have a stand at the event. All landlords welcome.
You are invited to join SWLA at the upcoming Rent Smart Devon event, the premier local event for private landlords and anyone involved in letting property.
It is being held on Thursday 23 May at Exeter Racecourse, Haldon Hill, Exeter EX6 7XS and will run from 2.00pm to 8.00pm.
This free event, kindly sponsored by Tozers LLP, will host exhibitions from specialist companies covering many aspects of property management, as well as support organisations, available to help smooth the tenancy pathway. There will be a range of experts on hand to answer your questions.
Doors open at 2pm for networking with presentations in break-out rooms throughout the afternoon and evening.
The final presentation timetable will be published nearer the event but will cover the following topics:
Book your place now so you don’t miss out!
Teignbridge is hosting this event jointly with East Devon District Council, Exeter City Council and Mid Devon District Council. If you are a business and would like to book a stand – please contact the organisers.
Rent Smart Devon Tickets, Thu, May 23, 2024 at 2:00 PM | Eventbrite
Meter tampering is a significant challenge in the housing sector as it impacts landlords, tenants and the wider community and can destroy homes, businesses, and families. But did you know that there is a safe way to report any suspicion? That’s where the Stay Energy Safe service is vital, allowing you to speak up anonymously online or by calling 0800 023 2777.
Bypassing an electricity meter can have devastating consequences, including electric shocks, severe burns, and fires, while gas theft can lead to lethal leaks and catastrophic explosions.
Gas leaks and fatal fires
Real-life cases noted on the Stay Energy Safe website here provide insights into the harsh consequences of energy theft, including instances where innocent lives have been lost. Nadeem Mughal was jailed for three years after risking his neighbours’ lives after tampering with his gas meter twice. His actions led to significant gas leaks – threatening up to 20 neighbours in a block of flats in Leicester.
In another incident, a son living with his elderly housebound mother caused her tragic death due to a bypassed electricity meter after it caused a devastating fire.
Feeling the pinch
Since the start of the cost-of-living crisis, Stay Energy Safe has received an average of 1,000 energy theft reports nationally every single month. From some of the information Stay Energy Safe receives, it’s evident that even business owners have been engaging in this incredibly dangerous and reckless behaviour for years.
Financial pressures can encourage people to look for ways to save money without understanding the risks. However, beyond the financial implications, the threat extends far beyond mere billing concerns. Individuals who engage in energy theft can pose serious safety risks to neighbours. Such unauthorised meter tampering jeopardises the safety of the broader community, including residents and employees.
Energy theft occurs in approximately 1 in 150 homes annually, costing UK consumers £1.4 billion yearly, with each consumer estimated to pay an extra £50 each year on their energy bills. Find out more about energy theft here.
Spot the signs
To protect and safeguard legitimate organisations within the housing sector, their employees, contractors, residents, and the surrounding community, it’s important to be able to recognise the signs of energy theft.
You can learn to recognise signs of energy theft here. It often includes irregular wiring, sparking, burn marks or the smell of gas.
The charity Crimestoppers
Stay Energy Safe is a service run by the independent charity Crimestoppers. To pass on your suspicions about energy theft, please report it by completing the Stay Energy Safe online form or by phone on 0800 023 2777. 100% anonymous. Always. This means you will never be asked for your personal details.
By speaking up safely, you will be helping to protect properties and communities, preventing harm or even loss of life.
Speak up. Stay safe.
HMO Licencing fee changes come into effect on 1st April 2024
The fees are to be increased in line with the 6% uplift across the council.
The fees & forms will be amended to:
Initial application (full fee) £1,007.00
Initial application (discounted fee for holding accreditation) £901.00
Renewal application (full fee) £954.00
Renewal application (discounted fee for holding accreditation) £848.00
https://www.plymouth.gov.uk/apply-house-multiple-occupation-licence
FRIDAY 8th MARCH 2024 – TUESDAY 12th MARCH 2024
Local Housing Allowance (LHA) determines the maximum financial support available for renters in the private rented sector. The Secretary of State has committed to reviewing the level of LHA rates annually.
Each year Rent Officers at the Valuation Office Agency (VOA) determine LHA rates for the coming financial year.
On 22 November 2023 the Chancellor announced in the Autumn Statement that the government will raise LHA rates in Great Britain to the 30th percentile of local market rates in April 2024.
The Department for Work and Pensions (DWP) uses LHA rates to calculate the maximum housing support for claimants of either the housing element of Universal Credit or Housing Benefit. LHA rates are set within Broad Rental Market Areas (BRMA).
A BRMA is an area within which a person could reasonably be expected to live, taking into account access to certain facilities and services, for example with regards to health and education.
LANDLORDS WHO CHARGE LHA RATE RENT MAY WANT TO LOOK AT INCREASING THEIR RENT FROM 01 APRIL 2024 TO REFLECT THE INCREASE.
The LHA rates from 01 April 2024 have now been confirmed and published as follows; https://www.gov.uk/government/publications/local-housing-allowance-lha-rates-applicable-from-april-2024-to-march-2025
We have included a sample of the LHA rate increases below;
| AREA | SHARED | 1 BED | 2 BED | 3 BED | 4 BED |
| Plymouth 01.04.20-31.03.24 | £73.50 | £103.56 | £134.63 | £159.95 | £195.62 |
| Plymouth From 01.04.24 | £92.05 | £126.58 | £155.34 | £184.11 | £224.38 |
| Exeter 01.04.20-31.03.24 | £96.66 | £131.18 | £156.49 | £189.86 | £253.15 |
| Exeter From 01.04.24 | £123.58 | £144.99 | £182.96 | £218.63 | £299.18 |
| Bristol 01.04.20-31.03.24 | £90.10 | £159.95 | £189.86 | £218.63 | £304.93 |
| Bristol From 01.04.24 | £117.68 | £207.12 | £252.00 | £299.18 | £425.75 |
| Kernow West 01.04.20-31.03.24 | £80.97 | £113.92 | £143.84 | £169.15 | £212.88 |
| Kernow West From 01.04.24 | £90.33 | £126.58 | £159.95 | £187.56 | £253.15 |
| Mid & East Devon 01.04.20-31.03.24 | £84.50 | £103.56 | £136.93 | £166.85 | £207.12 |
| Mid & East Devon From 01.04.24 | £93.00 | £121.97 | £157.64 | £189.86 | £253.15 |
| Mid & West Dorset 01.04.20-31.03.24 | £80.00 | £119.67 | £149.59 | £182.96 | £241.64 |
| Mid & West Dorset From 01.04.24 | £98.11 | £136.93 | £172.60 | £207.12 | £287.67 |
| North Devon 01.04.20-31.03.24 | £69.04 | £97.81 | £126.58 | £149.59 | £182.96 |
| North Devon From 01.04.24 | £97.81 | £111.62 | £148.44 | £178.36 | £228.99 |
| South Devon 01.04.20-31.03.24 | £65.00 | £103.56 | £138.08 | £168.00 | £207.12 |
| South Devon From 01.04.24 | £84.50 | £116.22 | £155.34 | £193.32 | £253.15 |
Information from gov.uk.
Bristol City Council’s Cabinet has now approved the two new schemes which were subject to a consultation last year. The two new schemes will come into force on Tuesday 6 August 2024. These are a citywide additional House in Multiple Occupation (HMO) licensing scheme, and a new selective licensing scheme (which covers most other types of privately rented properties) in three wards – Bishopston and Ashley Down, Cotham and Easton.
This means that all HMOs within the Bristol City Council boundary, and most other types of privately rented properties in Bishopston and Ashley Down, Cotham and Easton wards, will need a licence from Tuesday 6 August 2024. The schemes will be in operation for five years and each property will be inspected at least once during the lifetime of the scheme to ensure that they meet licensing standards.
Landlords and agents will have up to three months from the start date to submit their licensing applications (until 5 November 2024) together with the part 1 fee.
An HMO is a rented property where three or more persons who are not related, occupy the accommodation and share some facilities such as a bathroom and/or kitchen.
HMOs that are already licensed under existing additional licensing schemes whose licence will expire while the new scheme is in force, will need to be re-licensed when the current licence expires.
HMOs which are occupied by five or more persons will still be required to be licensed under the mandatory HMO licensing scheme and not under the citywide additional scheme.
It is a legal requirement for landlords to make a licence application for each property that they let that is covered by licensing schemes. Failure to do so could result in formal enforcement action as set out below.
Under the Housing Act 2004, a person commits an offence if they control or manage a house/HMO which is required to be licensed but is not. This could result in prosecution and an unlimited fine.
Other consequences of operating an unlicensed property are; rent repayment orders, not being able to end a tenancy while the property is unlicensed, or the local authority taking over the management of your property.
Under the Housing and Planning Act 2016 local authorities are permitted to impose a civil penalty of up to £30,000 as an alternative to prosecution for a range of offences under the Housing Act 2004. This includes the offences outlined above in relation to the licensing of houses.
Further details on how to make a licence application will be sent just before the scheme goes live, and the system will not accept an application before that date.
For more information on property licensing please visit Bristol City Councils licensing web pages https://www.bristol.gov.uk/business/licences-and-permits/property-licences
Wednesday 1st May 2024 – 9:00 – 4:30pm
Venue – Online
Price – £65 for members of SWLA, £75 for non – members for one day course.
Course covers ASTs, Deposits, Section 21s, Section 8s, HMOs, Gas and Electrical Safety, Inventories and much more.
The course will provide you with all the skills to start, manage and finish a tenancy.
Places still available. Contact the office on 01752 510913 or info@landlordssouthwest.co.uk to book your place, places only secured on receipt of payment.
Over 1200 landlords have already completed this course since September 2011.
Course can lead to Accreditation, if required.
We are proud to announce Landlord Accreditation South West (LASW) are founder members of the West of England Rental Standard.
Thank you to members who attended our AGM this week, and thanks to members who sent their apologies.
Steve Lees, SWLA Chair, lead the evening, with SWLA Treasurer Katarina Swain reporting on the financial matters.
After the official business was complete, everyone took the opportunity to catch up with office staff and other members over refreshments.
We look forward to our next (speaker) meeting in April.
We often meet Shelter and Citizens Advice representatives at local housing meetings, so it was a welcome change to welcome Jack, Jaroslava and Sarah to the SWLA office to share ideas, discuss sector trends and difficulties, and plan some positive collaboration to improve the private rented sector experience in Plymouth and further afield.
Citizens Advice, with the help of Shelter, have released some helpful booklets in an easy read format for tenants. The latest publication shares information on repair responsibilities in the home and how to best deal with them/report disrepair.
You can find the booklet here, and share with your tenants; PowerPoint Presentation (citizensadviceplymouth.org.uk)
In 2020, two-year-old Awaab Ishak died after prolonged exposure to mould in his home in Rochdale.
Under new government proposals, dubbed “Awaab’s law”, social housing landlords in England could be forced to repair mouldy properties much more quickly.
Mould – sometimes referred to using the American spelling mold – is a microscopic fungus that grows in damp places.
Mould spores are found everywhere, and are released in their thousands into the atmosphere.
Signs of mould at home include fuzzy black, white or green patches on the walls, and a damp and musty smell.
People living with mould are more likely to suffer from respiratory illnesses, infections, allergies or asthma.
Inhaling or touching the spores that mould releases into the air can cause an allergic reaction, such as sneezing, a runny nose, red eyes and a skin rash.
Mould can also trigger asthma attacks and cause coughing, wheezing and breathlessness.
Each year, the NHS in England spends an estimated £1.4bn on treating illnesses associated with living in cold or damp housing, according to building research body BRE.
Those more at risk from mould include the elderly, children and babies, as well as people with existing respiratory illnesses and some skin problems.
Condensation is the leading cause of mould in homes across the UK.
It most commonly occurs in parts of the home where there are high moisture levels: bathrooms, kitchens, and around windows.
When air cools, water vapour forms into water droplets as it comes into contact with surfaces in the home that are below a temperature known as the dew point.
These surfaces can include uninsulated external walls or windows.
If left untreated, the surface can become damp and create the conditions for mould to grow.
Older and poorly insulated properties are more prone to this.
Mould can also be caused by daily tasks which create excess moisture such as showering, cooking and drying washing indoors.
Taking shorter showers and wiping down surfaces afterwards can help, as can improving ventilation, and opening kitchen windows or using an extractor fan when cooking.
It is also important to check for leaky pipes or gutters which can make the problem worse.
Private and social landlords have a responsibility to make sure homes are safe and in good repair.
In private and social rental properties, it is the landlord’s responsibility to fix a mould problem which is due to poor maintenance, according to the housing charity Shelter.
If the mould is so bad that your home becomes unfit for habitation, then you could be classed as homeless and entitled to emergency accommodation.
But landlords may not be responsible if there is evidence a tenant has not been ventilating the home correctly.
In December 2020, two-year-old Awaab Ishak died after prolonged exposure to mould in his home.
He lived in a one-bedroom flat in Rochdale with his father Faisal Abdullah and Faisal’s wife Aisha Amin.
Mr Abdullah reported mould developing in the flat to his housing association, Rochdale Boroughwide Housing (RBH), in 2017, but was told to paint over it.
In June 2020, he instructed solicitors to issue a claim over the recurring mould, but any repairs could not be done until the case was settled.
Awaab was taken to Rochdale Urgent Care Centre on 19 December that year with shortness of breath, and died a few days later after suffering respiratory and cardiac arrest.
The government has announced plans to ensure social housing providers in England address hazards such as damp and mould more quickly.
Social landlords would have to investigate issues within 14 days and begin fixing them within a further seven days. Emergency repairs would have to be made within 24 hours.
Landlords who fail to comply could be taken to court and ordered to pay compensation.
A consultation on the proposals closes on 5 March.
After this, the government says it will bring Awaab’s Law into force “as soon as practically possible”.
Article by the BBC https://www.bbc.co.uk/news/uk-63642856
If you would like to respond to the consultation; https://www.gov.uk/government/consultations/awaabs-law-consultation-on-timescales-for-repairs-in-the-social-rented-sector
For landlords the fines increased from £80 per lodger and £1,000 per occupier for a first breach to up to £5,000 per lodger and £10,000 per occupier.
Repeat breaches will be up to £10,000 per lodger and £20,000 per occupier, up from £500 and £3,000 respectively. The higher penalties will come in at the start of 2024.
Landlords have been hit with over 320 civil penalties worth a total of £215,500 since the start of 2018 when the Government’s Right to Rent rules were first introduced.
Landlords should already be checking the eligibility of anyone they let a property to and there are a number of ways to do this, which are not changing, including via a manual check of original documentation and a Home Office online checking system.
For full details on how to carry out a landlord Right to Rent check, please see the gov.uk website www.gov.uk/landlord-immigration-check and contact the SWLA office if you have any queries.
Plymouth City Council are working with South West Landlords Association to drive up the standards of accommodation on offer in our city. They are providing courses to interested parties keen to increase their knowledge and improve the standards of the accommodation they offer.
The courses are initially offered to various partners of PCC but where there are places available they will be offered to SWLA members on a first come first served basis. The first 1/2 day course took place today on Damp & Mould, it was very informative.
Keep your eye out for any further opportunities.
A recent court case has highlighted the importance of landlords providing tenants with documentation.
A new boiler was installed at the start of a tenancy, the Building Regulations Compliance Certificate was not given to the tenant, a Gas Safety Certificate was given to the tenant later in the tenancy when the gas safety check was due, later on in the tenancy a Section 21 was served. The Section 21 was deemed invalid as the Building Regulations Compliance Certificate was never given to the tenant.
The full court case information can be read here, article by the NRLA;
A landlord has had their Section 21 possession claim rejected – and been ordered to pay their tenants’ court costs – after failing to provide them with information about a newly installed boiler before serving notice.
The case of Van-Herpen v Green & Green rested on an argument as to whether a Building Regulations Compliance Certificate had to be issued for a newly installed boiler – and whether a Gas Safety Certificate should have been provided following subsequent visits to the property by a gas safety engineer.
Mrs Van-Herpen, the landlord, had attempted to serve notice on July 14, 2022 – 17 months ago – but the tenants disputed the validity of the Section 21 notice on the basis they hadn’t been given essential paperwork.
The background
While the claimant and defendants’ version of events differed on certain points, it was accepted the tenants moved into the property on September 5, 2018.
A qualified gas safety engineer confirmed in a written statement to the court that a new boiler was installed on September 6, 2018, and that – as a new installation – it did not need a Gas Safety Certificate, but instead only a Building Regulations Compliance Certificate.
He claimed in his statement: ‘This certificate is a Gas Safety Certificate in its own right and is issued by the Gas Safety Register’. Both parties agreed a copy was not given to the tenants, although the landlord said they would have provided one, if asked.
The same engineer also checked the boiler two months later, on November 14th, and although he said this was a ‘complete safety check’ he also said no Gas Safety Certificate was necessary, as the boiler was under a year old. Again, both parties agreed no Gas Safety Certificate was given to the tenants, but the landlord says this is because it was not required due to the boiler being under a year old.
The boiler was next checked on October 30, 2019, after an original inspection scheduled for August was delayed by the tenants – something they didn’t dispute. Following this inspection, on the same day, the tenants were given a Gas Safety Certificate by the engineer.
The issues in question
The case rested on two key questions:
• Had the claimant (landlord, Van-Herpen) complied with the Gas Safety Regulations, despite the fact they did not provide the defendants (tenants, Green & Green) with the Building Regulations Compliance Certificate (dated September 6, 2018)?
• Had the claimant complied with the Gas Safety Regulations, despite the fact they did not provide the defendants with a Gas Safety Certificate (following the inspection on November 14)?
The landlord argued there was no legal requirement to provide the Building Regulations Compliance Certificate, and that no Gas Safety Certificate was issued or requested in 14th of November 2018.
They argued that, having provided a Gas Safety Certificate to the defendants following the 2019 inspection, the Section 21 Notice was in all circumstances valid, and they were therefore entitled to possession.
The defendants argued the landlord was in breach of Gas Safety Regulations and therefore the notice was not valid.
The verdict
Following a trial at Hastings County Court on November 9, Deputy District Judge Duncan Wright ruled in favour of the tenants.
In his judgement he said he was ‘not persuaded by the claimant’s submission that such a check and consequential record is not required within 12 months of a boiler being installed’.
He also refused to accept the landlord’s suggestion that, had the defendants requested a copy of the Building Regulations Compliance Certificate, they would have been provided with it; saying the legislation clearly places the onus upon the landlord to provide the record to the defendants.
In his ruling he said the tenants: ‘should have been provided with a copy of the Gas Safety Certificates arising out of the inspections on September 6, 2018, and November 14, 2018, prior to service of the Section 21 Housing Act Notice. This did not occur.
“As a consequence, the purported Section 21 Housing Act Notice was defective, and as a consequence these proceedings must be dismissed.”
The then ordered the landlord to pay the tenants’ court costs.
Around 1.6 million private renters are set to receive a substantial boost to their housing support in April, as the Government lays legislation to increase Local Housing Allowance (LHA).
For the new rates from April 2024; https://www.gov.uk/government/statistics/local-housing-allowance-indicative-rates-for-2024-to-2025
The boost will benefit some of the poorest families on either Universal Credit or Housing Benefit who will gain around £800 a year on average.
The support worth over £7 billion over the next five years comes as the government publishes the proposed LHA rates for 2024/25, with people living in the most expensive areas set to see the biggest boost.
The increase to the LHA has been welcomed by many housing and homelessness organisations and is part of the Government’s £104 billion cost of living support package – worth an average £3,700 per household. This also includes raising benefits by 6.7%, the state pension by 8.5%, and £300 cost of living payments, with over 7 million households receiving the latest payment and another payment coming in February. Whilst more than 26 million payments totalling over £2 billion to help families with essentials have been made since October 2021 through the Household Support Fund.
This additional support comes as 27 million people are set to get a significant tax cut as the main rate of employee National Insurance will be cut from 12% to 10%. This reduces National Insurance by more than 15% in total, saving £450 this year for the average salaried worker on £35,400.
Subject to the benefits cap, eligible renters of:
Work and Pensions Secretary Mel Stride said:
Housing costs are the number one expense for families. This £1.2 billion boost to Local Housing Allowance, along with our landmark Back to Work reforms, reflects our fair approach to welfare – helping people into employment while protecting the most vulnerable with unprecedented cost of living support.
Minister for Disabled People, Health and Work Mims Davies said:
Keeping inflation down and supporting people to stay and progress in work is the best way we can bolster families’ finances and help them progress, but we know some are still struggling which is why we are providing this important extra help.
This key boost to our housing support will see average renters around £800 better off. It is just one crucial part of our £104 billion package to help the most vulnerable which also includes an increase to benefits in line with inflation and our latest series of cost of living payments.
Crisis Chief Executive, Matt Downie said:
It cannot be understated just how vital this investment in housing benefit will be in helping to both prevent and end homelessness.
In recent years, people receiving housing benefit have found it increasingly difficult to afford the soaring cost of rents. Giving housing benefit this crucial boost will make a real difference to people across Great Britain and will relieve some of the pressure facing people on the lowest incomes.
We hope this investment will be maintained for the long term, so we can continue with our collective mission to end homelessness for good.
The investment comes on top of the £30 billion the government is providing over 2023/24 on housing support.
Minister for Levelling Up Jacob Young said:
This funding boost is just one part of how we’re supporting people in the private rented sector with the cost of living.
We have already invested £30 billion in housing support, along with Discretionary Housing Payments which provide an added safety net for anyone struggling to meet their rent.
We are taking the long term decisions needed for a better private rented sector, through our Renters Reform Bill, giving tenants security and supporting good landlords.
The government is also tackling homelessness with the £654 million Homeless Prevention Grant, giving councils in England vital money and support to prevent and tackle homelessness, as well as developing the Homelessness Covenant with Crisis.
The Local Housing Allowance determines the maximum housing support for private renters. It ensures that claimants in the same area with similar situations are entitled to the same maximum support regardless of the rent they pay. The level of support is based on the area where the person lives and the size of their household.
More information on cost of living payments – Cost of Living Payments 2023 to 2024 – GOV.UK (www.gov.uk)
| BRMA
(Broad Rental Market Area) |
Shared Accommodation Rate (SAR) LHA rate (£) | 1 bed LHA rate (£) | 2 bed LHA rate (£) | 3 bed LHA rate (£) | 4 bed LHA rate (£) |
| Plymouth Currently | 73.50 | 103.56 | 134.63 | 159.95 | 195.62 |
| Plymouth Proposed | 92.05 | 126.58 | 155.34 | 184.11 | 224.38 |
*The data is indicative, confirmed rates will be released in accordance with legislation on 31 January 2024.
Article from gov.uk
https://www.gov.uk/government/news/millions-of-renters-better-off-with-boost-to-housing-support
Wednesday 24th January 2024 – 7.30pm start – Future Inn Plymouth – Members Only