An estimated 1.6m private renters are set to receive an uplift to their housing support for 12 months from April 2024, as the government rises Local Housing Allowance. 

The increase will benefit some of the poorest families on either Universal Credit or Housing Benefits who will gain around £800 a year on average.

Propertymark, the letting agents’ trade body, has analysed the effect of LHA, which determines the maximum housing support for private renters. It ensures that claimants in the same area with similar situations are entitled to the same maximum support regardless of the rent they pay. The level of support is based on the area where the person lives and the size of their household.  

Subject to the benefits cap, Propertymark calculates that per month eligible renters could get up to the following: 

– A four-bedroom property in Bristol = £1,850 

– A two-bedroom property in Greater Glasgow = £850 

– A one-bedroom property in Leeds = £675 

Propertymark says it welcomes the increases but remains committed to improving LHA levels and would like to see it increased annually to keep up with market rates, rather than frozen again in 2025 as the UK Government currently intends.

Since 2020 LHA has increasingly lagged rising rents and effectively priced the most vulnerable tenants out of the market for private rented homes. We will continue to urge the UK Government to go further and increase the LHA level to the 50th percentile. This will ensure that tenants have wider access to secure and affordable housing options.