A recent government report highlights a worrying rise in pensioner poverty, prompting calls from charities and industry leaders for urgent action to support older private renters. The freeze on Local Housing Allowance (LHA) rates, now extended for a second year, is drawing criticism for exacerbating financial pressures on vulnerable tenants.

Rising Pensioner Poverty and Frozen LHA Rates

New government data reveals that the number of pensioners living in poverty in the UK increased by 200,000 within a single year. This troubling trend has intensified concerns over the adequacy of housing support for older renters in the private sector.

Despite these figures, the government announced during the Autumn Budget that LHA rates will remain frozen for the 2026/27 financial year. This decision marks the second consecutive year without an increase to LHA, the housing benefit scheme that helps low-income renters meet their rental costs.

Impact on Older Private Renters

Independent Age, a charity advocating for older people, has urged the government to reconsider the freeze. Morgan Vine, director of policy and influencing at Independent Age, emphasised the need to uprate LHA to prevent older renters from making “dangerous sacrifices” just to maintain their housing. She also called for a comprehensive strategy to improve take-up of all entitlements, addressing barriers that prevent older people from accessing vital financial support.

According to government figures, nearly 1.7 million private rented households were receiving housing cost support as of August this year. Of these, 53% face a shortfall between their housing benefit payments and their actual rent, highlighting the financial strain many tenants endure.

Industry Concerns Over Policy Decisions

The National Residential Landlords Association (NRLA) has also voiced concerns about the combined effect of the frozen LHA rates and recent tax increases. Ben Beadle, NRLA chief executive, criticised the government’s approach, stating it “beggars belief” that these measures are intended to help renters.

He warned that the 2-percentage-point rise in taxes on dividends, property, and savings income, announced in the Autumn Budget, will likely push rents higher. Coupled with static housing benefit rates, Beadle described the policy package as “deeply regressive” and likely to disproportionately harm low-income tenants.

What this means for landlords

For landlords, the ongoing freeze on LHA rates alongside increased taxation may lead to heightened financial pressures on tenants, particularly older renters reliant on housing benefit. This could result in increased rent arrears or difficulties in securing tenants who can afford market rents without adequate support.

Landlords should be aware of these challenges and consider proactive engagement with tenants to manage affordability issues. Understanding the evolving policy landscape and its impact on tenants’ ability to pay rent is essential for maintaining stable tenancies and minimising void periods.

Source: Based on reporting from Property118

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