Question
In Liverpool Wavertree, research by Crisis and Zoopla shows just 3% of homes for private rent are affordable for people who claim local housing allowance. The Office for Budget Responsibility has warned that the increase in tax on property income announced in the Budget could feed through into rents, making an increase in LHA more necessary than ever. What discussions has the Minister had with colleagues in other Departments on that issue, as well as on rent regulation linked to inflation and wages, to relieve the pressure on private renters and reduce the cost of increasing LHA?
Answer
At the Budget last year, the OBR assessed that there would be only a small impact on rental prices of 0.2% as a result of the 2 percentage point increase to property rates from April 2027, and we expect the further increase of 2 percentage points announced in the Budget last week to have a comparably small effect. Households who need additional support can apply to their local authority for help via the crisis and resilience fund. As my hon. Friend knows, the Government do not support the introduction of rent controls.
Verdict: AMBER (28/100)
The reply gives a concrete impact estimate for the property rates increase (0.2% from the Office for Budget Responsibility) and states the government's opposition to rent controls. It does not say whether the Minister has engaged with colleagues in other Departments, and it does not address Local Housing Allowance costs. Its remaining content is generic or only loosely relevant, so the person who asked would likely need to ask again for the missing specifics.
How we got there
| Question item | Coverage | Specificity | Rationale |
|---|---|---|---|
| What is the nature of the Minister's engagement with colleagues in other Departments on the impact of the property income tax increase on private rents and on increasing Local Housing Allowance. | Partially Addressed | Generic | The reply gives the OBR estimate (0.2%) and an expectation of a comparably small effect from the property rates increase on rents, which covers the impact part of the item. It says nothing about the Minister's engagement with colleagues in other Departments and nothing about Local Housing Allowance, so the engagement element is unanswered. |
| What is the nature of the Minister's engagement with colleagues in other Departments on rent regulation linked to inflation and wages, including how it could relieve pressure on private renters and reduce the cost of increasing Local Housing Allowance. | Partially Addressed | Hedged | Statement 4 states a clear government position against rent controls, which speaks to the rent-regulation subject, but it gives no reason and does not describe any engagement with other Departments. Statement 3 concerns the crisis and resilience fund rather than rent regulation or LHA, so the item's engagement and LHA-cost elements go unanswered. |