## Record Homelessness Figures Highlight Housing Crisis

Government statistics from Autumn 2025 show that an estimated 4,793 people slept rough on a single night in England, the highest number recorded since official records began. Alongside this, the number of households seeking council support for homelessness has also increased, signalling a worsening housing crisis. These figures underscore the growing pressure on the private rented sector and social housing providers.

## Regional Increases in Rough Sleeping and Temporary Accommodation

The North East and North West regions have experienced the most significant rises in rough sleeping rates. The North East saw a 31% increase compared to the previous year and a 158% rise over three years. The North West reported a 20% increase year-on-year and 74% over three years. Temporary accommodation numbers are also at record highs, with 175,990 children living in emergency accommodation as of September 2025, marking the 11th consecutive record. Additionally, 134,760 households were in temporary accommodation, further highlighting the scale of the issue.

## Calls to Unfreeze Local Housing Allowance Rates

Charities including Crisis and Shelter are urging the government to unfreeze LHA rates, which have remained static for two consecutive years, including the 2026/27 financial year. Matt Downie, Chief Executive of Crisis, emphasised the urgent need for more affordable homes and social housing investment. He stated:
“The government must drastically increase the supply of genuinely affordable homes… ministers need to be delivering up to 90,000 new social homes a year, not moving backwards.”

Downie also highlighted the importance of unfreezing housing benefit to prevent further homelessness, describing the current situation as a national emergency.

Similarly, Sarah Elliott, Chief Executive of Shelter, described the homelessness figures as a “national scandal” and called for bold government action. She said:
“The record numbers currently homeless simply cannot wait any longer for a secure home… the government must deliver at least 90,000 social rent homes a year for 10 years, and urgently unfreeze housing benefit to end homelessness.”

## Impact of Frozen LHA Rates on the Private Rented Sector

The government confirmed that housing benefit rates will remain frozen for 2026/27. Currently, nearly 1.7 million private rented households receive housing cost support, with 53% facing a shortfall between their housing benefit payments and their rent. This gap places additional financial strain on tenants and landlords, particularly in high-rent areas such as London, where only 1% of rental homes are affordable under current LHA rates. For landlords, this situation may lead to increased rent arrears, void periods, or difficulties in letting properties to benefit claimants.

## What This Means for Landlords and Letting Agents

The ongoing freeze in LHA rates amid rising homelessness and rent affordability issues presents challenges for landlords and letting agents managing tenancies reliant on housing benefit. With many tenants struggling to cover rent shortfalls, landlords may face increased financial risk and administrative burdens. The calls from charities for increased social housing supply and unfreezing of housing benefits indicate potential future policy shifts that could affect the private rented sector’s dynamics. Staying informed about government housing policies and benefit changes will be essential for landlords and agents navigating this evolving landscape.