Benefit support for private tenants in Leeds falls short of average rent, analysis shows

People renting private homes across Leeds are being left short every month by Universal Credit, new data shows.

A study conducted by Landlord Insurance UK has revealed that home-seekers on benefits across Yorkshire are facing gaps between their rent and monthly allowance from the Local Housing Allowance (LHA) of up to £128.

In Leeds, the maximum amount a person can receive from the Local Housing Allowance for a two-bedroom home is £775, whilst the average rent for a property of this size is £818, leaving tenants most in need £481 short.

The Local Housing Allowance, set by the Department for Work and Pensions, establishes a cap on how much money someone can receive through Universal Credit to support rental costs.

Rates are based on private market rents being paid by tenants in a Broad Rental Market Area (BRMA).

Chris Richards, Director of Landlord Insurance UK, noted that it’s people who are struggling the most that have to bear the brunt of the shortfall.

“These aren’t top-of-the-market rents, and the allowance still falls short,” Chris said.

Elsewhere in the region, renters on Universal Credit in Harrogate and Wakefield are left £82 and £28 short respectively.

Chris added: “Someone has to make up that difference, and it is usually tenants on the lowest incomes, out of money they simply don’t have.

“That puts tenancies at risk for renters and landlords alike.”