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

A charity is urging the government to unfreeze Local Housing Allowance (LHA) rates, warning that housing costs have become increasingly unaffordable.

In response to government statistics showing that older private renters are spending more than a third of their income on housing costs, Independent Age has called on ministers to raise LHA levels.

The news comes as the government has defended freezing LHA rates.

Situation is unsustainable

During the Autumn Budget, ministers announced that LHA rates will remain frozen for a second consecutive year in 2026/27.

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

“For those on the lowest income, this figure rose to 48%. Alarmingly, both these numbers exceed the ‘more than a third’ figure that research suggests means housing costs are unaffordable.

“It’s clear that, especially for those on the lowest incomes, rent is cutting into their budget to an unacceptable level. 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.”

He adds despite the Renters’ Rights Act, the government must unfreeze LHA rates.

He said: “While the Renters Rights Act will bring much-needed rights and protections for renters of all ages, it will not address spiralling rent costs. The UK government must urgently uprate Local Housing Allowance so it covers at least the cheapest 30% of the market.

“Currently, it has been frozen for two years, and in that time, rents on average have risen by 10.5%. With the number of older private renters expected to grow in coming years, this situation is unsustainable and must change.”

According to government data, almost 1.7 million private rented households across the country were receiving housing cost support as of August this year, with 53% of those households facing a gap between their housing benefit payments and their monthly rent.