Welfare Reform (3)

MQT on 2011-12-14
Session date: 
December 14, 2011
Question By: 
Nicky Gavron
Labour Group
Asked Of: 
The Mayor


Do you believe that Local Housing Allowance has driven the inflation of London's private rented sector rents?


Answer for Welfare Reform (3)

Answer for Welfare Reform (3)

Answered By: 
The Mayor

I would expect any demand subsidy to put upward pressure on prices.  Over the period since the introduction of the LHA rent inflation has not been very high. But this is because average rents overall in London have risen slower than inflation since 2000; before rising steeply in the last year. It will always be difficult to isolate the effect of the LHA from the many wider changes in the housing market over this period.