The Local Housing Allowance (LHA) rates were kept at 2024 levels again in April 2025, continuing the government’s approach to rental support for private tenants across England, Scotland, and Wales. These policies aim to address rising rents and the cost of living, impacting millions of households and thousands of landlords.
For the 2025-2026 financial year, the Department for Work and Pensions (DWP) confirmed that LHA rates remain pegged to the 30th percentile of local market rents in each Broad Rental Market Area (BRMA). This follows earlier reforms intended to better align housing benefit with actual private rental costs.
The DWP has published official LHA rate tables for 2025-2026, covering the period from April 2025 to March 2026. These figures set the maximum Universal Credit and Housing Benefit payments for each property type, and are accessible via downloadable CSV files on the government website.
Landlords should note that there is no guaranteed annual uprating of LHA rates to match inflation or rent increases beyond this period. Future rates will be reviewed as part of government spending decisions.
Key updates for 2025-2026 include maintaining the 30th percentile approach across all BRMAs. Monthly benefit caps have been revised for each property category, from shared accommodation to four-bedroom homes.
These changes reflect ongoing government efforts to match housing support with real rental costs, helping tenants on benefits access affordable properties more easily.
For landlords and letting agents, staying informed about LHA rates is essential. Understanding the updated caps can guide rental pricing and inform strategies for properties let to tenants receiving Housing Benefit or Universal Credit.
Because LHA continues to use the 30th percentile, benefit-receiving tenants maintain access to affordable homes within each BRMA. This can expand a landlord’s pool of potential tenants, though in high-rent areas, LHA may fall behind market rates unless further adjustments are made.
With no guarantee of automatic annual increases, landlords need to plan for potential shortfalls between LHA support and rising rents. This is key to maintaining affordability for benefit-receiving tenants.
Industry groups have welcomed the continuation of the 30th percentile policy but remain concerned about its sufficiency if rental inflation outpaces benefit adjustments. Professional associations and homelessness charities continue to call for regular review to ensure LHA rates remain aligned with the market.
Other challenges for landlords include Section 21 reforms, court backlogs, and overall confidence in providing housing to tenants reliant on benefits. Understanding LHA policy is part of navigating these broader issues.
Practical steps for landlords include reviewing current LHA exposure. Using the DWP’s 2025-2026 LHA tables or the LHA-Direct tool allows landlords to check maximum entitlements for their properties.
Landlords should also consider their tenant mix strategy. Updated rates may influence whether it is viable to accept benefit-receiving tenants, and can guide decisions around property categories and rental levels.
Staying up to date with policy developments is essential. Monitoring future DWP announcements and potential uprating decisions will help landlords plan rental strategies and maintain long-term tenant stability.
Professional support is available from organisations such as Total Landlord, mydeposits, and Landlord Action, which offer specialist advice for managing benefit-dependent tenants and navigating the LHA system.
Looking ahead, LHA rates for 2025-2026 will remain in effect from April 2025 to March 2026 for all new and existing eligible claims in the private rented sector. The focus remains on aligning housing support with market rents, and future adjustments will depend on government review and broader housing policy considerations.
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