Affordability pressures deepen for private renters

When the phrase “cost-of-living crisis” emerged in 2021, it suggested a sharp period of hardship followed by a return to normal. Five years on, high rents and household bills have made financial strain a lasting reality for many renters.

The latest Voice of the Tenant survey from the TDS Charitable Foundation shows that private renters are increasingly falling behind with rent and cutting back on essentials. The pressure is not limited to households traditionally seen as financially vulnerable: arrears are being reported across income groups.

With Prime Minister Andy Burnham promising a “cost-of-living government”, what action would make the greatest difference to renters?

Rent arrears have reached a record high

Nearly one in five tenants (19%) said they were in rent arrears. This is up from 12% last year and is the highest proportion recorded by the TDS Charitable Foundation since the Voice of the Tenant survey began in 2022.

Some households face even greater pressure:

• More than a quarter of households with children were in arrears

• Somewhat unexpectedly, higher-income tenants were also more likely to be in arrears (23% versus 19% of all tenants)

These findings point to a more widespread affordability problem rather than one confined to the lowest earners.

They are reinforced by Citizens Advice research. More than 400,000 people sought its help with debt problems in 2025 – almost 45% more than in 2021. Half of debt clients had a “negative budget”, meaning their income did not cover essential spending, while private rent arrears were 25% higher than in 2021. These findings show that housing costs and other basic costs of living are enough, in themselves, to drive many tenants into debt.

When tenants fall behind, informal support is often their first option. Among those in arrears, our national tenant survey found that:

• 42% asked friends or family for advice or financial help

• 25% used local or community advice sources

• Only 20% contacted their council

• Only 20% searched for information online

This underlines the need for trusted, accessible advice that reaches people before arrears become a crisis.

Unfreeze Local Housing Allowance

Tenants receiving benefits are under particularly acute pressure. More than half of all tenants (52%) said they cut back on food, heating, clothing or other essentials to meet housing costs. Among tenants receiving benefits, this rose to 63%.

Local Housing Allowance (LHA) is intended to cover rents in the cheapest 30% of the local market. However, rates have been frozen while rents have continued to rise. More than half of tenants receiving benefits (52%) experienced a rent increase in the past year, compared with 46% of tenants overall.

A coalition report by Crisis and eight other organisations, found that only 1.9% of privately advertised homes across Great Britain were affordable within LHA rates. The average monthly gap between housing support and the cheapest third of rents for a two-bedroom home was £419.

The consequences are severe. People may struggle to sustain an existing tenancy, while those experiencing homelessness can find themselves effectively locked out of private renting. Our survey found that 80% of tenants receiving benefits faced at least one challenge when searching for a new home.

The freeze also affects landlord confidence. Our soon to be published Voice of the Landlord 2026 survey found that 22% of landlords felt unable to let to tenants receiving benefits. Two-thirds of this group cited perceived financial insecurity.

The Government should restore LHA so that it covers at least the cheapest 30% of local rents – and provide long-term certainty. This would help families keep their homes, reduce homelessness and give landlords greater confidence to let at affordable rates.

Make rent increase protections work in practice

Rent levels remain a serious concern. Almost half of tenants experienced a rent increase in the past year, while 65% said rents were a serious problem in their area.

Those most likely to report an increase were:

• Tenants aged 45 to 64 (52%)

• Renters in coastal areas (51%)

• Households with children (49%)

Where renters already have little room in their budgets, Generation Rent argues that an above-market increase can amount to an economic eviction.

Tenants can challenge an unfair rent increase at a First-tier Tribunal, but 78% do not know this route exists according to our tenant survey. Awareness is only part of the problem: tenants also need a process that is accessible and supported by reliable evidence about local rents.

We support the recent HCLG Select Committee report’s recommendations that the Government should:

• Collect advertised rents and rent histories through the Private Rented Sector Database

• Make this information accessible to tenants and Tribunal decision-makers

• Closely monitor Tribunal performance to ensure rent increase protections are working effectively.

  
  

A clear route forward

Private renters are not experiencing a temporary squeeze. Record arrears, cut-backs on essentials and a growing gap between housing support and market rents show that affordability pressures are deeply rooted.

The Government can take two evidence-based steps: unfreeze LHA and ensure existing protections against unfair rent increases work effectively.

Together, these measures would help tenants receiving benefits avoid debt and homelessness, while making it easier for all private renters to use existing protections confidently against unfair rent increases.