Gap between LHA rates and average market rents widens
Original Article Summary
The gaps between average market rents and LHA rates are becoming permanent because LHA rates have been frozen for the 2025/26 year
PropMatch Curated Analysis
LHA rates now fall £377-£1,194 short of average market rents across England, with less than 2% of properties affordable at LHA levels, creating permanent affordability gaps that drive record temporary accommodation spending.
Investor Relevance
Critical for understanding tenant demand segmentation and rental pricing power. The LHA freeze creates a two-tier rental market where investors can command higher rents from working tenants, but limits access to benefit-dependent tenants who represent a significant potential market segment.
Original Source:
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