There are signs that in some places market rent levels are falling as a result of unsold properties being let by their owners.

Has anyone found whether or not this is being reflected in LRR or LHA levels?

Rent levels certainly seem to be falling here - had a client today who's just taken on a three bedroom house for £375 pcm which would have been unheard of this time last year - however the LHA has remained consistent and hasn't varied much appart from the single room rate which has fluctuated between £49 and for this month £57.50 per week.

There seems to be more properties to rent here (West Cornwall) and some properties seem to be advertised for rent for longer.

I believe that the rents are definitely not increasing, some do seem to be advertised for less than I would have expected for the same area/size say six months ago.

To date (and I have just seen May's figures) the Lha rates continue to increase here.

Thanks for responses. A quick sampling of LHA rates on LHA Direct shows that in some areas LHA rates have fallen slightly, while they have risen very slightly in some others.

This is a different scenario to the historical one where LHA/LRR rates and rents tended to increase. Some landlords wishing to increase rents may be in for a surprise and their tenants thus more likely to face a shortfall between HB and contractual rent.