Agents’ body Propertymark has renewed its call on government to unfreeze Local Housing Allowance (LHA).

LHA is calculated by the government and, in theory, reflects local market rents. 

However, since introduction in 2008,they have been frozen at different times. 

In November’s Budget, Chancellor Rachel Reeves again froze LHA for 2026/27.

Now Timothy Douglas – jead of policy and  ampaigns at Propertymark – has reiterated the demand for government action.

He says: “Propertymark has long called for LHA rates to be restored so they reflect real market rents. 

“The longer the UK Government continues to freeze LHA, the greater the gap becomes between support and actual housing costs, and the more expensive it will be to realign LHA with the market in the long term.

“Freezing LHA for 2026/27 will only exacerbate the affordability crisis facing many renters, pushing some further into financial hardship and making it harder for them to secure or sustain a stable home. 

“Increased regulatory and financial pressures, including tax rises for landlords, alongside a growing imbalance between supply and demand, are continuing to drive rents up across many parts of the UK.

“As a result, keeping LHA rates frozen widens the shortfall between housing support and real rents, 

“increasing the risk of homelessness and placing additional strain on already stretched local services. 

“Propertymark is clear that LHA should, as a minimum, be set at the 30th percentile of local market rents, if not the 50th percentile, to give renters a realistic chance of accessing and maintaining suitable housing.

“We urge the UK Government to reconsider this freeze and work with the devolved administrations to ensure housing support keeps pace with the realities of the rental market.”

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