New research has found a "widening gap" between the help private tenants receive with housing costs and the actual rent they pay.

Analysis carried out by the Chartered Institute of Housing (CIH) discovered in some areas of the UK, people are only able to afford rent in the lower 5% - 10% of the private rented sector (PRS) market.

Originally, Local Housing Allowance (LHA) rates were intended to ensure people could access 30% of the market.

However, as LHA rates are now frozen for four years from April, CIH said the situation is set to get worse.


In Aberdeen, Scotland, CIH said there are "very severe cash shortfalls" in every LHA category, while in Northern Ireland, 80% of LHA rates have already fallen bellow the bottom 30% of the market - second only to England.

Research also found LHA shared accommodation rate in Newport, South Wales would need to be set at £29 per week for people under 35 to be able to afford the lower 30% of the market.

In England, it was discovered Chesterfield's broad rental market area is even lower than the lowest rent that the rent officer could find in their market evidence data, meaning there is no shared LHA accommodation available.

CIH chief executive Terrie Alafat CBE said the organisation is becoming "more and more" concerned at the lack of correlation between LHA and rents."

"Our research shows that people are going to find it difficult to continue renting in the PRS," she said.

"CIH is calling on the government to review LHA rates for all categories of accommodation, to make sure everyone is able to access a safe, affordable home."

(LM/MH)