Landlords are facing an increased risk of arrears and failed tenancies, according to Propertymark. This is attributed to housing support leaving benefit-receiving tenants unable to cover their full rent.
Propertymark has written to DWP minister Baroness Sherlock, urging the restoration of Local Housing Allowance (LHA) to at least the 30th percentile of local rents, with annual updates. The professional body also suggests considering a move to the 50th percentile when public finances permit, alongside improved local market data.
LHA sets the maximum amount many private tenants can receive for rent through Universal Credit or Housing Benefit. Research published in February 2025 found that just 2.7% of private homes advertised for rent were affordable for housing benefit recipients, a notable drop from 12% in 2021-22.
Propertymark's head of policy and campaigns, Timothy Douglas, stated that while the Crisis and Resilience Fund is welcome, frozen LHA rates undermine affordability in the private rented sector during a period of rising rents. This situation, he added, reduces access to housing for those most in need, increasing the risk of homelessness and straining local authority budgets.
The professional body supports provisions in the Renters’ Rights Act aimed at preventing discrimination against benefit recipients. However, it notes that these protections will have limited impact if housing support continues to make most available homes unaffordable for claimants.