Facebook
Britain's News Portal
Around The Clock
BREAKING
Loading latest headlines…

Propertymark Urges Government to Increase Housing Benefit for Private Tenants

Propertymark has called on the government to increase Local Housing Allowance (LHA) to better match current rental costs, warning that current support levels are inadequate.

  • Propertymark has written to Baroness Sherlock, Minister of State at the DWP, regarding housing support.
  • The trade body wants LHA restored to at least the 30th percentile of local rents and updated annually.
  • Research from February 2025 indicated only 2.7% of private rental listings were affordable for housing benefit recipients.

Propertymark, a trade body, has written to the government advocating for increased housing support to align with current rental prices. The organisation has contacted Baroness Sherlock, Minister of State at the Department for Work and Pensions (DWP), following her statement about local authority Crisis and Resilience Fund housing payments.

While Propertymark acknowledges the Crisis and Resilience Fund as a valuable short-term safety net, it argues that one-off payments cannot substitute for adequate Local Housing Allowance (LHA) levels needed to cover ongoing rental expenses. The body is urging the government to restore LHA to at least the 30th percentile of local rents and to update these rates annually to keep pace with the market. Propertymark also suggests considering a move to the 50th percentile when public finances permit.

The trade body has also requested that Baroness Sherlock ensure the DWP publishes data on the Crisis and Resilience Fund's housing payments. This data would clarify application numbers, repeat requests, approvals, refusals, and the amounts paid towards rent, helping to assess if emergency support is reaching those in need and how often the fund covers ongoing gaps between rent and LHA.

Propertymark states that LHA sets the maximum amount many private renters can receive towards their rent through Universal Credit or Housing Benefit. Despite LHA being intended to help people afford homes at the cheaper end of the local market, Propertymark claims that repeated freezes have caused support to fall further behind rising market rents. Research from February 2025 showed that only 2.7% of private rental listings were affordable for housing benefit recipients, a decrease from 12% in 2021-22.

Why this matters: The increasing gap between Local Housing Allowance and actual rents raises the risk of rent arrears, failed tenancies, and homelessness for low-income households, while also increasing pressure on councils and temporary accommodation budgets.

What this means for you: If you are a private renter receiving Universal Credit or Housing Benefit, the current levels of Local Housing Allowance may not cover a significant portion of your rent, potentially requiring you to find the difference from other income.

Related Articles

Get the news that matters.

Join thousands of readers getting the best of British news straight to their inbox.