Industry News Sally Walmsley 14/03/2025

Just 5% of rental homes now affordable for benefits claimants

Just five per cent of homes in the private rented sector are now affordable to benefits claimants, according to new research out this week. 

The data has come from the National Institute of Economic and Social Research, which said the figure has fallen dramatically from the 20% of rental homes available to those in receipt of benefits just five years ago.  

It is now echoing NRLA calls for a proposed new freeze on benefits payments to be reversed and has also called for Local Housing Allowance (LHA) rates to be brought in line with the 50th percentile of local rents.

The NRLA would welcome such a move, and has argued that even increasing rate to the 30th percentile would make a huge difference on the ground for those struggling to make ends meet. 

More than 1.5 million households renting privately in Britain receive Universal Credit with support for their housing costs through LHA included. 

A freeze on LHA rates put in place back in 2020, was lifted last year, however as of April this year rates will, yet again, be held at the same levels indefinitely. 

This move will see many benefits claimants seeing an increasing gap between the payments they receive and their rent, with an analysis of Government data by the NRLA last year showing two thirds of claimants were experiencing a shortfall. 

The new report shows that in parts of London and Cornwall less than 2% of the private rental market is affordable to those on housing benefit, and even in Tees Valley, the most affordable area, the figure still only rises to 15% of the private rental market. 

The NRLA is continuing to campaign against the new freeze and for LHA rates to be pegged to market rents. For information on the NRLA’s welfare campaign click here. 

More information 

  • The award-winning NRLA Training Academy offers courses to support those letting to tenants in receipt of benefits. To find out more click here. 

  • #benefitsfreeze
  • #localhousingallowance
  • #rents
  • #UniversalCredit
Sally Walmsley

Sally Walmsley

Magazine and Digital Editor

Sally is the Magazine and Digital Editor for the NRLA. With 20 years’ experience writing for regional and national newspapers and magazines she is responsible for editing our members' magazine 'Property', producing our articles for our news site, the weekly and monthly bulletins and editorial content for our media partners.

See all articles by Sally Walmsley