Older renters hit by rising rents as charity calls for LHA freeze to be lifted

Rising rental costs are placing significant financial pressure on older private renters in the UK, with many spending an unsustainable proportion of their income on housing. A leading charity has called on the government to reconsider its decision to freeze Local Housing Allowance (LHA) rates, warning that the current situation is increasingly unaffordable for vulnerable tenants.

Older renters face growing financial strain

Independent Age has highlighted recent government statistics revealing that older private renters are spending more than a third of their income on housing costs. For those on the lowest incomes, this figure rises sharply to 48%, well above the threshold typically regarded as affordable. The charity emphasises that such high housing costs force older renters to reduce spending on essential items like food, water, and energy, potentially endangering their wellbeing.

Morgan Vine, director of policy and influencing at Independent Age, stated: “Statistics released by the UK government show that, on average, older private renters pay over 35% of their income on housing costs. For those on the lowest income, this figure rose to 48%. Alarmingly, both these numbers exceed the ‘more than a third’ figure that research suggests means housing costs are unaffordable.”

Government’s stance on LHA freeze

Despite these concerns, the government has defended its decision to maintain the freeze on LHA rates for a second consecutive year in the 2026/27 financial year. This policy means that housing benefit levels will not increase to match rising rents, which have grown by an average of 10.5% during the freeze period.

Independent Age warns that this approach is unsustainable, particularly as the number of older private renters is expected to increase in the coming years. Morgan Vine added: “While the Renters Rights Act will bring much-needed rights and protections for renters of all ages, it will not address spiralling rent costs. The UK government must urgently uprate Local Housing Allowance so it covers at least the cheapest 30% of the market.”

Wider implications of the LHA freeze

Government data from August 2026 shows that nearly 1.7 million private rented households receive housing cost support. However, more than half of these households face a shortfall between their housing benefit payments and their actual rent, exacerbating financial hardship.

The freeze on LHA rates, combined with rising rents, risks pushing older renters into precarious financial situations. This could lead to increased demand for social housing and other support services, placing additional strain on public resources.

What this means for landlords

For landlords and letting agents, the ongoing LHA freeze presents challenges in balancing rental income with the affordability needs of tenants, particularly older renters reliant on housing benefits. As rents continue to rise while LHA support remains static, landlords may encounter increased rent arrears or tenant turnover.

Understanding the pressures faced by older renters can help landlords and agents engage more effectively with tenants and consider flexible approaches to tenancy agreements and rent reviews. It also underscores the importance of staying informed about government policy changes that impact rental markets and housing benefit schemes.

Source: Based on reporting from Property118

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