Poverty among older private renters is continuing to rise, underscoring growing financial strain within the sector. Government figures show that 34% of older tenants receiving housing benefit are now living in poverty, up from 27% the previous year.
New analysis from Independent Age suggests the situation could be significantly improved if housing support kept pace with market rents. The charity estimates that around 37,900 older private renters could be lifted out of poverty if Local Housing Allowance (LHA) rates were aligned with actual rental costs.
LHA, which determines housing benefit levels for low-income private renters based on local rent benchmarks, has increasingly lagged behind rising prices. Although it was expected to be uprated to cover at least the cheapest 30% of the rental market, the government chose in the Autumn Budget to extend the existing freeze. Over the same period, average UK rents have risen by 10.5% since April 2024, when LHA was last adjusted.
Independent Age is calling for an annual review mechanism to ensure LHA tracks rental inflation and continues to cover lower-cost homes. While rates remain fixed at 2024 levels, the policy has already been frozen for eight of the past 15 years, steadily reducing its real-terms value.
The charity also highlights wider impacts across the sector, with more than 270,000 older private renters currently facing a shortfall between their rent and their housing benefit entitlement. Many are reportedly bridging the gap by reducing spending on essentials such as food and heating, illustrating the direct impact of the mismatch between support levels and housing costs.
Joanna Elson, chief executive at Independent Age, said: “The situation for many renters on a low income of all ages is dire. Our research shows that not uprating Local Housing Allowance so that it keeps pace with rising rents has a very direct impact on the lives of older private renters. We know that some are having to choose whether they skip meals, use their lights at night, or keep a roof over their head.
“The least the UK government must do is uprate Local Housing Allowance so it covers the cheapest 30% of the market, as it has previously done. Currently, the measure is falling ever further behind rents and we know that, for many, this means cutting back to dangerous levels. Many other financial entitlements have been uprated this month, why should Housing Benefit be any different? An adequate level of LHA is crucial to making sure older people in financial hardship have a secure and affordable home. This situation is unsustainable and puts older renters at risk of homelessness. It must be remedied.”
