Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential impact of (a) Housing Benefit and (b) other housing subsidies on rent levels in the private rented sector.

The Local Housing Allowance (LHA) determines the maximum housing support for low income tenants in the private rented sector (PRS). In April 2024, LHA rates were set at the 30th percentile of local market rents and have been maintained at the same levels for 2025/26.

In the PRS, LHA households in similar circumstances living in the same area are entitled to the same maximum rent allowance regardless of the contractual rent paid. However, LHA rates do not cover all rents in all areas.

International evidence varies widely on how much housing subsidies feed through into rent levels. DWP analysis has shown that only 9.5% of rents paid by households covered by the LHA were within +/- £5 per week of the LHA rate in May 2024, with a similar rate (7%) seen in February 2023. While anecdotal evidence suggests that some landlords use the LHA to set rent levels, on balance it appears that in practice local rental market dynamics are the primary driver.

Discretionary Housing Payments are also available from local authorities to those who face a shortfall in meeting their housing costs.