Propertymark says the government’s benefits reform agenda must not lose sight of the need to adequately set Local Housing Allowance rates.

The trade body says the LHA provides vital support to those that need it and makes it easier for tenants in the private rented sector to access and sustain their tenancies.

The body’s comments come after Work and Pensions Secretary Liz Kendall revealed the government’s benefits shake up.

Under the proposals people aged under 22 could be prevented from claiming universal credit top up payments for health conditions; it will also be harder for people with less severe conditions to claim disability payments; and extra benefit payments for health conditions will also be frozen for current claimants and nearly halved for new applicants.

The overall benefits bill will continue to rise but this will happen on what Kendall calls a “sustainable footing” by getting people into work.

In response, Propertymark chief executive Nathan Emerson says: “Key to the UK Government’s benefit reforms will be ensuring that those who need the most support receive it. 

“Many will acknowledge the need to reset Universal Credit payments and provide an uplift to the Disabled Facilities Grants, but more must be done to ensure that grants are utilised efficiently and effectively across the country.

“Furthermore, alongside the focus on getting more people into work and supporting young people, good and secure housing plays a vital role too.”

Tenants’ activist group Generation Rent was quick to criticise the move, singling out Liz Kendall, taking to social media platform X and saying: “Cutting spending on welfare could force private renters out of their homes. We urge the government to listen to anti-poverty organisations and back track on proposals from the Work and Pensions Secretary.”

Generation Rent’s deputy chief executive Dan Wilson Craw also tweeted: “Just 9% of privater rented homes are accessible, meaning many renters living with a disability are forced to pay inflated rents due to a lack of choice or live in homes that aren’t suitable for their needs. Many renters use their Personal Independence Payment [another benefit] to supplement their rent, meaning these changes could force them out of their homes.”