Thousands of older private renters in poverty due to LHA shortfall

More than 30,000 older private renters would be pulled out of poverty if Local Housing Allowance (LHA) matched actual rents, according to new research.

Data by Independent Age reveals 270,422 older private renters currently have a shortfall between their rent and the rate of Local Housing Allowance.

LHA sets the maximum level of rent support available to claimants, but rates have been frozen for a second consecutive year for 2026/27.

Renters on a low income of all ages is dire

According to government figures, more than one-third (34%) of older private renters receiving Housing Benefit are now in poverty.

Joanna Elson CBE, chief executive at Independent Age, said: “The situation for many renters on a low income of all ages is dire.

“Our research shows that not uprating Local Housing Allowance so that it keeps pace with rising rents has a very direct impact on the lives of older private renters.

“We know that some are having to choose whether they skip meals, use their lights at night, or keep a roof over their head.”

Older renters at risk of homelessness

Independent Age is calling on the government to reinstate LHA rates to cover at least the lowest 30% of rents from next year.

As previously reported on Property118, only 1% of London rental homes are affordable under LHA rates.

Ms Elson said: “The least the UK government must do is uprate Local Housing Allowance so it covers the cheapest 30% of the market, as it has previously done. Currently, the measure is falling ever further behind rents and we know that, for many, this means cutting back to dangerous levels.

“Many other financial entitlements have been uprated this month, why should Housing Benefit be any different? An adequate level of LHA is crucial to making sure older people in financial hardship have a secure and affordable home. This situation is unsustainable and puts older renters at risk of homelessness. It must be remedied.”