Rising Private Rents Contribute to Increasing Poverty Among Renters

The Joseph Rowntree Foundation (JRF) has published a report highlighting the severe impact of rising rents on poverty levels among UK renters. According to the 2023/24 data, approximately two million private renters have been pushed below the poverty line due to escalating housing costs. This trend is causing significant concern for landlords, letting agents, and policymakers alike, as it reflects the growing financial strain on tenants in the private rented sector.

Extent of Poverty Among Renters After Housing Costs

The report reveals that after accounting for housing costs, around 40% of social renters and 37% of private renters were living in poverty during 2023/24. Notably, about 25% of social renters and 40% of private renters only fell into poverty once housing costs were included, indicating that rent payments are a key factor pushing these households into financial hardship.

In contrast, poverty rates among homeowners were significantly lower, with 14% of those owning their homes outright and 10% of those with a mortgage living in poverty. This disparity underscores the disproportionate impact of housing costs on renters compared to homeowners.

Calls for Government Action on Housing Costs and Support

In response to these findings, the JRF is urging the government to take decisive action to curb rent increases and improve support for renters. One key recommendation is to permanently re-link the Local Housing Allowance (LHA) rates to local rent levels. This would help ensure that housing benefit keeps pace with actual rental costs, providing essential relief to low-income tenants.

However, the government’s Autumn Budget announcement confirmed that LHA rates will remain frozen for a second consecutive year in 2026/27. This decision has been criticised by the National Residential Landlords Association (NRLA), which warns that freezing LHA rates will disproportionately affect low-income renters, potentially exacerbating poverty levels within the private rented sector.

Need for More Affordable and Social Housing

The JRF report also emphasises the importance of increasing the supply of affordable housing for social rent as a long-term solution to the housing crisis. Building more social housing would provide more secure and affordable options for those struggling with high private rents, potentially reducing poverty rates among renters.

What This Means for Landlords and Letting Agents

For landlords and letting agents, these developments highlight the ongoing challenges faced by tenants in meeting rising rental payments. While rent increases may reflect market conditions, the growing financial pressure on renters could lead to higher arrears and tenancy turnover if affordability issues are not addressed. Engaging with tenants and understanding the broader housing policy context will be crucial in managing tenancies effectively in this environment.

Furthermore, the debate around LHA rates and government support may influence rental demand and affordability, factors that landlords and agents should monitor closely to adapt their strategies accordingly.

Suggested internal link anchors

• private rented sector
• Local Housing Allowance (LHA)
• housing costs
• social renters
• affordable housing
• National Residential Landlords Association
• housing benefit
• rental arrears
• tenancy turnover
• housing crisis

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/