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In recent years, Local Housing Allowance (LHA) rates have not been adjusted since April 2020 until April 2024, leading to a significant disconnect between market rents and housing benefit levels. According to the Institute for Fiscal Studies, only a small fraction, about 5%, of privately rented properties now have rents covered by housing benefits.

Ben Beadle, CEO of NRLA, expressed concern, stating, "The current uncertainty in the housing welfare system is causing great insecurity and anxiety for both tenants and landlords. This undermines the stability of the rental market and threatens significant efforts to reduce homelessness."

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He further emphasized, "Despite cross-party work and recommendations from the Welfare and Pensions Committee to improve the system, none of the major political parties have committed to addressing this issue in their election manifestos. This situation is unacceptable. We strongly urge the next government to ensure that housing benefit rates are permanently aligned with market rents to provide necessary support for housing costs."

For residents relying on housing benefits, even with public housing rents not frozen, there remains a substantial gap between housing benefit amounts and actual rents. It is estimated that over 800,000 households receiving Universal Credit will face increased economic pressure.

"With the freezing of Local Housing Allowance (LHA) from April 2025, the situation could worsen," warned Beadle. He stressed that immediate government action is crucial now to repair and strengthen the housing welfare system, ensuring that everyone can afford suitable housing and promoting social stability and fairness.