AQO 463/22-27


Mr Matthew O'Toole
Social Democratic and Labour Party
South Belfast


Tabled Date: 09/05/2024
Answered On Date: 22/05/2024
Priority Written: No


Question:
To ask the Minister for Communities, further to the Office of National Statistics figures published in April 2024 which state that average rents have increased by 10.1 per cent in the last year, to outline the action he is taking to support private renters.


Answer:
I am acutely aware of the sharp increases in rents in the private rented sector since the pandemic.
Research carried out by my Department concluded that the best ways of relieving pressure on affordability for renters was by increasing housing supply, and ensuring the benefit system properly takes account of the cost of housing.
Therefore, the increase in Local Housing Allowance rates, which set the level of housing support that households receive through Housing Benefit and Universal Credit, from last month will go some way in helping renters pay their rent and relieve pressure on their household budgets.
Last year, my Department paid out over £325m to cover housing costs in the private rented sector, this will increase this year with the LHA uplift.
Some of these rates have increased by over 40 percent, which is a stark illustration of the scale of the impact that the LHA freeze had on households in the private rented sector.
I will be advocating for these rates to keep track of the market rents, so this does not prove to be a very temporary fix for our lower income households.
In addition, those households who are still experiencing a shortfall in their housing support against their rental costs after the uplift in LHA, may be able to access Discretionary Housing Payments.
As I have already stated in this chamber, one of my key priorities is to increase the supply of safe, warm, and affordable homes.
To help achieve this, I will continue to spend most of my Department’s capital budget on building new social homes and exploit new funding sources to support the delivery of affordable housing. A quarter of a million people live in social homes, with highly subsidised rent. My Department will help about 800 households into home ownership this year, around half of whom we expect to live in the private rented sector.
Last week I made an announcement to the Assembly on the development of a new intermediate rent product, another way we will help private renters.  
I am also working to finalise a Housing Supply Strategy, aimed at unlocking supply across all tenures, with the intention of bringing it to the Executive for consideration as soon as possible.