Purpose

This proposal seeks to align temporary
accommodation rental charges with 100% of the current Local Housing
Allowance (LHA) rates, effective from April 2025. Currently, rental
rates are based on 90% of the 2011 LHA rates, which are
significantly below market rents. This discrepancy creates an
unfair situation for households transitioning to private rented
accommodation, where they face substantial rent increases. Aligning
the rent levels to current LHA rates will ensure fairness and
consistency, while better preparing households for future private
renting. It will also generate £1-2 million in additional
revenue annually, stabilising the council’s General Fund,
which is under pressure due to the rising costs of providing
temporary accommodation. Approximately 84% of households will not
be financially impacted, as their rent increase will be covered by
housing benefit. Support will be provided for these households to
minimise disruption.