Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
LHA Freeze Confirmed for 2027-28: Low-Income Renters Hit Hardest
The government has confirmed that Local Housing Allowance (LHA) rates will remain frozen for 2027-28. Work and Pensions Secretary Pat McFadden said rates will be maintained at their current levels.
What the freeze means
Local Housing Allowance is the benefit used to help private renters on low incomes pay their rent. Freezing rates for 2027-28 means the maximum support available to claimants will not rise in line with any changes in rent levels.
Reaction from tenant groups
Tenant groups have labelled the move “disappointing”, warning that it will hurt renters. According to Property118, low-income renters are expected to be hit the hardest by the freeze. The source material did not provide further details on the specific impact.
What this means for letting agents and inventory clerks
For letting agents and inventory clerks, the freeze is a reminder that affordability pressures in the private rented sector are likely to continue for tenants who rely on LHA to meet their rent. Agents may see ongoing challenges in matching LHA claimants to available properties if rents continue to rise while support remains static. Inventory clerks should be aware that tenancy sustainment could be affected, potentially leading to more frequent tenancy turnovers or disputes over rent arrears.
While the full impact of the freeze will depend on wider market conditions, the confirmation provides certainty that LHA rates will not increase in 2027-28. Agents and clerks should monitor any further guidance from the Department for Work and Pensions and consider how this may affect their dealings with tenants in receipt of housing benefit.
The Property118 report does not include specific figures on the number of affected renters or the expected shortfall, so agents should await further detail from official sources.
Source: Property118