Landlords Urge UK Government to Unfreeze Housing Benefit Rates

The National Residential Landlords Association (NRLA) is urging the UK government to unfreeze Local Housing Allowance (LHA) rates, challenging the belief that increasing benefits drives up private rents. New NRLA analysis shows that average weekly rents rose faster during LHA freezes—3.4% annually between 2016/17 and 2024/25—than when rates were linked to local rents, which saw a 2.5% annual increase between 2008/09 and 2015/16.

The government is currently weighing whether to maintain the freeze starting in April 2026. The Institute for Fiscal Studies estimates that restoring the link to the cheapest 30% of rents would cost £1.5 billion annually. However, supporters argue this investment would reduce the £2.8 billion currently spent on temporary accommodation and lift thousands of adults and children out of poverty.

Local leaders and charities have highlighted the severity of the crisis. Andy Burnham criticized the freeze for increasing homelessness and placing undue pressure on local councils, while the charity Crisis reports that fewer than 2% of private rentals are currently affordable for those relying on housing benefits.