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

Rising rents are placing an increasing financial strain on older private renters, with a charity urging the government to reconsider its decision to freeze Local Housing Allowance (LHA) rates. Independent Age highlights that many older tenants are spending a disproportionate share of their income on housing, exacerbating affordability challenges.

Older renters face mounting housing costs

New government statistics reveal that older private renters are dedicating over a third of their income to housing expenses. Independent Age has responded by calling on ministers to raise LHA levels, arguing that the current freeze on these rates is worsening the affordability crisis for vulnerable tenants.

The government has defended its position on freezing LHA rates, which were confirmed to remain unchanged for a second consecutive year in the 2026/27 financial year during the recent Autumn Budget announcement.

Unsustainable financial pressures

Morgan Vine, director of policy and influencing at Independent Age, emphasised the severity of the situation: “Statistics released by the UK government show that, on average, older private renters pay over 35% of their income on housing costs.”

He added that for those on the lowest incomes, this figure rises sharply to 48%, well above the threshold considered affordable by research standards. “It’s clear that, especially for those on the lowest incomes, rent is cutting into their budget to an unacceptable level,” Vine stated. “As older renters spend almost half of their income on rent, they are forced to cut back to often dangerous levels on other essentials, such as food, water and energy.”

Despite the introduction of the Renters’ Rights Act, Vine stressed that this legislation does not address the core issue of rising rents. He urged the government to urgently uprate the Local Housing Allowance so it covers at least the cheapest 30% of the rental market, noting that rents have increased by an average of 10.5% during the two years the LHA has been frozen.

“With the number of older private renters expected to grow in coming years, this situation is unsustainable and must change,” Vine concluded.

Wider implications of the LHA freeze

Government data from August this year indicates that nearly 1.7 million private rented households receive housing cost support. Of these, 53% face a shortfall between their housing benefit payments and their monthly rent, highlighting the growing gap between support levels and actual rental costs.

The freeze on LHA rates, therefore, not only affects older renters but also a significant proportion of the wider private rented sector reliant on housing benefits. This gap places additional financial pressure on tenants and may increase the risk of rent arrears and housing insecurity.

What this means for landlords

For landlords and letting agents, the ongoing freeze in LHA rates presents challenges in balancing rental income with tenants’ ability to pay. With many older renters struggling to meet rising rents, landlords may face increased rent arrears or turnover as tenants seek more affordable accommodation.

Understanding the pressures on tenants can help landlords and agents manage tenancies more effectively, potentially through proactive communication and support. Additionally, awareness of government policy changes and advocacy for fair LHA uprating can contribute to a more sustainable rental market for all parties involved.

Source: Based on reporting from Property118

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