Freeze on housing benefit ‘must be scrapped’ say landlords

The freeze on housing benefit must be scrapped immediately, according to landlord leaders.

The National Residential Landlords Association (NRLA) warns the ongoing cap on housing benefit rates is “completely unworkable”.

The remarks were made by the NRLA’s policy director Chris Norris (main picture) at this week’s Labour Party conference during a fringe event held in partnership with think tank DEMOS.

Brake on social mobility

He argued that it represents a “brake on social mobility, a brake on access [to rented housing] and a brake on investment” in new homes to rent.

Housing benefit rates have been frozen for the third year in a row, meaning benefit support is linked to rents from three years ago.

According to the Institute for Fiscal Studies (IFS), just 5% of rental properties advertised on Zoopla are now affordable for those in receipt of housing benefit.

Let down

Norris claimed tenants were being let down by a failure of government policy to encourage greater investment in private rented homes.

He argued the failure had left tenants with no choice over where they live. This, he argued, made them unable to vote with their feet when confronted with the minority of landlords providing sub-standard housing.

Chronic lack of rental homes

He said: “If they win power, Labour will need to tackle fundamental challenges in the rental market. It will need to tackle the chronic lack of private rented homes which is making it harder and harder for renters to find anywhere to live,” he said.

“The unjust housing benefit freeze will need to be scrapped.”

Stephen Cowan, leader of Hammersmith and Fulham Council, who is leading an independent review of the private rented sector for Labour, spoke of the “vital role” the rented sector had to play.

However, he also argued that the challenges the sector faces could only be addressed by boosting the supply of housing.

Landlords join Shelter in call for end to housing benefit freeze