What we want the UK Government to do
Central reforms are the key, and Propertymark has set these out in our position paper, Improving Access to the PRS Welfare-Dependent Tenants:
- restore LHA to at least the 30th percentile of local rents
- update rates every year so they keep pace with the market
- consider moving rates to the 50th percentile when the public finances allow
Collection of better rental data to give policymakers a more accurate picture of local markets is also a key part of our campaign. Broad Rental Market Areas should be reviewed only when there is enough evidence to avoid new gaps or distortions.
Baroness Sherlock must insist the DWP publishes data on the Crisis and Resilience Fund’s housing payments to clarify the applications and repeat requests, the number of approved or refused applications, and how much is paid towards rent.
This data will show whether emergency support is reaching people in need. It will also show how often households use the Fund to cover an ongoing gap between their rent and Local Housing Allowance (LHA).
Improving access to the PRS for welfare-dependent tenants
Includes recommendations on how those dependent on welfare support can have better access to the Private Rented Sector (PRS), and how letting agents and landlords can be supported to improve access to the PRS for other vulnerable groups.
Frozen LHA rates are the underlying problem
LHA sets the most that many private renters can receive towards their rent through Universal Credit or Housing Benefit. Rates vary by area, household size, and other circumstances, and are intended to help people afford homes at the cheaper end of their local market.
Propertymark accepts that LHA is not meant to meet every rent in every area. But repeated freezes have pushed support further away from the real market as rents have risen. Research published in February 2025 showed that just 2.7% of private rental listings were affordable to housing benefit recipients, down from 12% in 2021-22.
When the gap increases, low-income households must find the difference from already stretched budgets. This raises the risk of rent arrears, failed tenancies, and homelessness. Councils and temporary accommodation budgets also face greater pressure.
The shortage of affordable and social housing makes this more urgent. In many areas, the PRS is the only realistic option for people on low incomes or benefits.
Fair access must be backed by genuine affordability
We support measures in the Renters’ Rights Act 2025 that aim to end discrimination against people who receive benefits. However, anti-discrimination rules will have limited effect if housing support leaves most homes beyond a claimant’s reach.
Letting agents must still carry out fair credit and affordability checks to ensure tenants can meet the rent and upfront costs, including a deposit. Adequate LHA rates would help more people pass affordability checks and sustain tenancies, whilst giving landlords more confidence to let to households receiving benefits.
A long-standing campaign for reform
Propertymark is a member of the Cutting the Cost Coalition, which brings together tenant and homelessness charities, councils, landlord groups, and other partners to campaign for LHA reform. We have also attended the DWP Private Rented Sector Forum, which we helped restart following the COVID-19 pandemic.
In October 2025, we co-signed a letter with more than 40 housing, landlord and homelessness organisations calling on the UK Government to lift the LHA freeze. In February 2026, the Scottish Housing Secretary echoed our concerns, warning that rates were falling behind rents and adding to pressure on homelessness services.
