Report claims private renting pushes up minimum income needs

Rising rents are leaving families struggling to reach a minimum acceptable standard of living when renting privately, claims a new report.

Research by the Centre for Research in Social Policy (CRSP) at Loughborough University has found that many households are unable to afford the income needed to achieve a minimum acceptable standard of living in the private rented sector.

The Minimum Income Standard (MIS) report found that, despite recent policy measures aimed at improving living standards, many households continue to fall short of the income needed to meet this minimum.

Increased the income required

According to the data, the move from social housing to private renting has increased the income required to reach MIS for pensioners and households with children.

A single pensioner needs around £5,000 more per year from pensions and other income sources to reach the MIS in the private rented sector than in social housing.

A lone parent with two children now requires £67,600 to reach the MIS when renting privately, almost £8,000 more than if they lived in social housing.

Meanwhile, a couple with two children needs a combined income of £77,400 to reach the minimum standard when renting privately.

Dr Chloe Blackwell, from CRSP, said: “A renewed focus on improving living standards is welcome, but tackling high housing costs must be central to any effort to reduce the cost of living.

“Private renting has become the only realistic option for many households, and rising rents mean more families are struggling to reach a decent standard of living.”

Impact of freezing LHA rates

The report also reveals the impact of freezing the Local Housing Allowance (LHA).

The report says: “For those who are out of work or on a low income, the amount covered by the housing element of Universal Credit is restricted by the Local Housing Allowance (LHA).

“The LHA has been frozen since 2024, when it was temporarily re-linked to the 30th percentile of rents for different sizes of property within a Broad Rental Market Area. This has resulted in an estimated 6% reduction in disposable income by October 2025 for those affected, on average, with even greater losses for those with the lowest incomes.”

As previously reported by Property118, the government has defended freezing LHA rates, claiming a range of factors were considered before the freeze, including “the challenging fiscal context”.