{"id":107062,"date":"2025-04-01T10:30:00","date_gmt":"2025-04-01T09:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=107062"},"modified":"2025-04-01T09:55:30","modified_gmt":"2025-04-01T08:55:30","slug":"benefit-freeze-englands-rentals","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/benefit-freeze-englands-rentals\/","title":{"rendered":"Benefit Freeze Leaves Just 2.5% of England\u2019s Rentals Affordable, New Study Reveals"},"content":{"rendered":"\n<p>England\u2019s rental market has reached a critical point, with new research revealing that only<strong> a small fraction<\/strong> of properties remain accessible to those reliant on housing benefit. <\/p>\n\n\n\n<p>As rent prices soar and benefit levels remain static, low-income households are increasingly struggling to secure adequate accommodation in the private sector.<\/p>\n\n\n\n<p>This widening gap between support and rental costs is not only threatening housing security for millions but is also placing mounting pressure on local authorities and public health services.&nbsp;<\/p>\n\n\n\n<p>With <strong>homelessness <\/strong>rising and more families being pushed into unsuitable living conditions, the issue is becoming a defining challenge for both social policy and public infrastructure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Growing Mismatch Between Rents and Support<\/h2>\n\n\n\n<p>A joint study by <a href=\"https:\/\/www.crisis.org.uk\/\" target=\"_blank\" rel=\"noopener\"><em>Crisis<\/em> <\/a>and <em><a href=\"https:\/\/www.health.org.uk\/funding-and-partnerships\/our-partnerships\/health-equals\" target=\"_blank\" rel=\"noopener\">Health Equals<\/a><\/em> has found that only 2.5% of private rented homes in England were affordable to people receiving housing benefit between April and October 2024. <\/p>\n\n\n\n<p>The report highlights a dramatic fall in affordability from 12% in 2021\u201322, underscoring the rapid pace of rent inflation across the private rental market.<\/p>\n\n\n\n<p>According to the charities, the benefit\u2014designed to cover the lowest 30% of local market rents\u2014has failed to keep up with the real cost of renting. <\/p>\n\n\n\n<p>Over the past decade, average rents <strong>have risen by 45%<\/strong>, while support levels have remained static for much of that period. From 1 April 2025, housing benefit rates will be frozen again until 2026, affecting an estimated 5.7 million low-income households.<\/p>\n\n\n\n<p>The average monthly shortfall between <a href=\"https:\/\/en.econostrum.info\/uk\/housing-critical-issues-for-populations\/\" data-type=\"post\" data-id=\"100750\">housing <\/a>benefit and rent was found to be \u00a3337 for a one-bedroom property, \u00a3326 for a two-bedroom, and \u00a3486 for a three-bedroom home. As a result, thousands of households are forced to divert funds from essentials such as food and energy bills to cover their housing costs.<\/p>\n\n\n\n<p><strong>Matt Downie<\/strong>, Chief Executive of <em>Crisis<\/em>, described the policy freeze as a \u201creal-terms cut,\u201d warning that it risks pushing more people into rough sleeping and unsuitable temporary housing. \u201cWe are currently nowhere near covering the bottom third of rents,\u201d he said.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Strain on Councils and Growing Health Costs<\/h2>\n\n\n\n<p>The social impact of unaffordable housing is being felt beyond those directly affected, with local authorities facing rising demand for emergency accommodation. <\/p>\n\n\n\n<p>As of early 2025, over 126,000 <a href=\"https:\/\/en.econostrum.info\/uk\/households-can-avoid-energy-bill-increases\/\" data-type=\"post\" data-id=\"105739\">households <\/a>in England were living in temporary housing\u2014an all-time high. This figure includes <strong>more than 164,000 children<\/strong>.<\/p>\n\n\n\n<p>In the financial year 2023\u201324, councils spent approximately \u00a32.3 billion on temporary housing solutions, a figure likely to rise as the affordability gap widens. <\/p>\n\n\n\n<p>According to <em>Health Equals<\/em>, the wider public health cost of substandard housing, including cold and damp conditions, is estimated at \u00a31.4 billion annually for the NHS.<\/p>\n\n\n\n<p>Paul McDonald, the organisation\u2019s Chief Campaigns Officer, emphasised the link between poor housing and declining health outcomes. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIn the UK thousands of lives are already being cut short by up to 16 years by factors like poor quality and unaffordable housing.\u201d he stated.<\/p>\n<\/blockquote>\n\n\n\n<p>In response, a government spokesperson said that \u00a32 billion has been allocated to build 18,000 affordable and social homes. The government also highlighted reforms under its Renters\u2019 Rights Bill, which aims to curb exploitative rent increases and improve tenant protections.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A growing shortfall between housing benefit and private rent is locking millions out of the market.<br \/>\nWith a freeze now in place, low-income families are being left behind as costs continue to rise.<br \/>\nCharities say the system no longer reflects reality on the ground.<\/p>\n","protected":false},"author":10,"featured_media":107068,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-107062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/107062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=107062"}],"version-history":[{"count":6,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/107062\/revisions"}],"predecessor-version":[{"id":107087,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/107062\/revisions\/107087"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/107068"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=107062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=107062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=107062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}