Housing allowance 2024 changes.

col81

Hi, i rent a property for £525 per month the tenant receives £395 per month Housing benefit and tops the rest up themselves. I could charge £800 per month as that is the going rate. What are the new rules in 2024 with the new rules something to do with the average lowest rent in the area? can anyone advise 

elsien

This seems to be a reasonable summary. 

But it’s not the whole picture as the benefit cap may still apply to some families who won’t them get the full benefit of the uplift.

https://www.resolutionfoundation.org/press-releases/local-housing-allowance-uprating-provides-a-major-if-temporary-boost-to-low-income-renters-amid-a-housing-cost-crisis-across-britains-major-cities/

col81

Thank you, it seems odd that there are no exact figures or calculators to work it out. A single person in a 2 bed property in the area is entitled to £390 per month currently. What will they do write to everyone or just update it in April? thank you 

Yamor

The new figures will only be released on 31st Jan.

If you tell me where the property is, I can tell you what the LHA would be using last year's figures. This year's figures are likely to be even higher (but may be lower in some areas).

col81

Hi its in Warrington, they currently get £96 per week but are struggling. Thanks 

Yamor

Warrington is the North Cheshire BRMA. The current rate for someone entitled to a 1-bed (regardless of the fact that they are actually renting a 2-bed) is £97.81/week.

From April 2024 the rate will increase to the 30th percentile rent which will be published on 31 Jan 2024. The most recent figures published were on 31 Jan 2023, and the rate then was £103.56/week. So I wouldn't hope for a very large increase.

Newcad

From the figure you give it looks like the tenant is entitled to and gets 1-bed LHA rate towards the rent.
Currently in Warrington that's £97.81/week if Housing Benefit, or £425.01/month if UC Housing Element. (You should find out which one it is so you know whether it's from the council or the DWP, you may have to deal with them in future).
https://www.warrington.gov.uk/claiming-housing-benefit-local-housing-allowance

It's pretty obvious that your tenant cannot afford to rent a 2-bed property on 1-bed LHA rate, even when the rates do go up in April.

At the moment you are charging a lower rent than you could for the property, and benefits rates won't even meet that reduced rent.
You are losing out on your investment. (In effect you are subsidising the tenant and the benefits system at a cost to your potential business profits).
He is struggling to meet his bills and heading towards serious debt and other problems.

Which gives you both a hard choice to make, you can continue to charge below market rent, and your tenant struggle to meet even that lowered rent, and on a downwards spiral.
Or one of you can take steps to change the situation.

Ideally he should stir himself and find a 1-bed flat, a studio, or a room in a HMO, that he will be able to afford the rent for - Not an easy job these days, but it should be doable if he is not in arrears to you already, another Landlord will see that he is a payer and of course you could give him a good reference.

Less ideally you could evict, S8 if there are rent arrears, S21 if no arrears, both processes are currently taking up to a year to complete and actually evict.
That leaves him in the same position of having to find a new place to rent, but even more difficult to find because what landlord is going to take on someone who has just been evicted?

Forget re-housing by the council; there is a chronic shortage of Social Rental properties and those evicted (particularly single males) find theselves at best in grotty temporary accommodation, at worst on the street.

I don't like advising eviction in the slightest - but unless you are prepared to if he won't move himself, and keep subsiding this tenant at your own expense, then the situation is only going to grow worse over time. (Until eviction is the only option left).

Sometimes what looks like a cruel. uncaring, option at a particular time is better for the long term, and unless something changes drastically in rental benefits, or your tenant gets a job with a decent income, then this situation is only heading downhill.

It's better to take the hard choices while you still can rather than continue to suffer (both of you) until things deteriorate to the point where there are no choices left.

ONTHEFENCES

can anyone advise me on how to find out what the cap is for suffolk county council  for a retired single person,I can't find anything about it because I havn't moved there yet but would like to,particuley Lowerstoft,at the moment I'm living in brentwood essex,but my rent went up two years ago and the council will no longer pay the differance between what the cap is here,I'm living in a one bedroom flat with no garden.

Yamor

https://lha-direct.voa.gov.uk/