Tuesday, 09 February 2016

Research questions prime minister's rent claim

Research the prime minister claims shows rents are falling across the country actually shows they are increasing year on year.

Earlier this month, David Cameron said rent levels are coming down as a result of caps introduced in April 2011 to local housing allowance paid to private tenants. The claim was immediately questioned by the sector and Labour MPs.

In a parliamentary debate yesterday afternoon, housing minister Grant Shapps said he thought Mr Cameron was referring to recent analysis by LSL Property Services. Its report, which was published earlier this month, showed the average rent fell by 0.8 per cent in December compared with November, to £711 a month.

But the monthly fall came after 10 months of rises, and renting was still 4 per cent more expensive than the previous December.

A snap survey by Inside Housing found that 10 out of 11 councils contacted earlier this month said they had seen little or no reductions in rent by private landlords as a result of them receiving direct payment of LHA.

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