Research reveals that tenants on the lowest incomes are increasingly being denied access to social housing in England due to affordability concerns. This trend has significant implications for landlords and agents managing social housing, as it highlights growing challenges in meeting housing demand among vulnerable groups.

Affordability Checks Exclude Low-Income Tenants

A study conducted by the homelessness charity Crisis has found that housing associations in England are frequently rejecting applicants after conducting affordability checks prior to tenancy agreements. Approximately one-third of participating housing associations reported that these checks often revealed financial issues leading to the conclusion that an offer of social housing was unsuitable.

Moreover, nearly a quarter of associations indicated that households earning below certain income thresholds were sometimes excluded entirely from housing registers. This means that some of the poorest applicants are prevented from even being considered for social housing, not due to behavioural or need-based factors, but because of concerns over their ability to sustain rent payments.

Implications for Social Housing Providers

Matt Downie, Chief Executive of Crisis, emphasised the dilemma faced by housing associations: “Working with people who use our services, we know that people can be excluded from accessing a social home because their incomes are too low to meet the necessary criteria.” He highlighted the fundamental purpose of social housing as providing safe and stable accommodation for those on the lowest incomes.

Downie also pointed to the broader context, stating, “The reckless depletion of our social housing stock, alongside cuts to state support, has put English housing associations into an impossible position where they are forced to refuse access to people in precarious, vulnerable situations.” This situation contributes to rising homelessness, which carries significant costs for individuals, communities, and local authorities.

Changes in Allocation and Letting Practices

The research found that nearly 75% of housing associations, representing 90% of the homes in the sample, reported that recent changes to benefits have altered how allocations and lettings are managed. Specifically, limits on housing benefit and the overall benefit cap have led providers to scrutinise affordability more closely.

At the same time, associations are seeing a growing number of applicants with complex support needs. As a result, unless applicants face acute circumstances such as severe ill health or domestic abuse, access to social tenancies is often unlikely or subject to long delays. Even when households secure properties, there are concerns that insufficient support beyond housing may jeopardise their ability to maintain tenancies.

Exclusion of Unsuitable Tenants

One in four English housing associations reported frequently turning down council nominations because the proposed tenancy was deemed unsuitable. Reasons for exclusion included the need for costly property adaptations or the absence of specialist support services.

Applicants with a history of anti-social behaviour faced the highest levels of exclusion. Three-quarters of associations stated that housing registers would sometimes or always exclude such households if no support package was in place. More than half indicated that exclusions could still apply even when assistance was available.

Challenges in Allocating Scarce Social Housing

Researchers from Heriot-Watt University and the UK Collaborative Centre for Housing Evidence compared the task of allocating scarce social housing to “rearranging the deckchairs on the Titanic.” Nearly 75% of associations operating choice-based lettings reported that available homes bore little relation to the needs of applicants, with some expressing scepticism that any system could effectively prioritise demand given the volume of applicants.

Additional pressures include rising repair costs and tighter building standards, which limit new social housing development. Crisis is calling on ministers to overhaul the use of existing stock, citing Scotland as an example where refusals on suitability grounds are far less common.

In Scotland, only 6% of providers reported frequently rejecting council nominations, compared with 25% in England. Furthermore, over half of new social lets in Scotland go to homeless households, compared with just over a quarter in England.

Considerations for Landlords and Agents

For landlords and letting agents involved in social housing, these findings underscore the increasing complexity of tenant selection and allocation processes. Affordability assessments and support needs are becoming central to decisions, affecting which tenants can access social homes and sustain tenancies.

Understanding these dynamics is essential for managing expectations and providing appropriate support to tenants, particularly those with low incomes or complex needs. It also highlights the importance of collaboration with local authorities and support services to improve tenancy sustainment and reduce homelessness risks.

Looking Ahead: Trusted Partners Hub Launch

The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/.