A recent report warns that low-income renters could face a £1,370 housing shortfall within 18 months if rent inflation persists. Generation Rent emphasizes that without intervention, the affordability gap between private rents and housing benefits will worsen by the end of 2025. Rent inflation is projected to push low-income households to pay 14.2% above available social support, resulting in an annual £1,370 shortfall for those renting an average two-bedroom home in the UK.

Despite Chancellor Jeremy Hunt’s temporary unfreezing of Local Housing Allowance (LHA) in 2023, Generation Rent urges a permanent link to local rents to address ongoing challenges, especially as rents are expected to grow another 8.5% by late 2025. The organization emphasizes that the cost of living crisis for renters is far from over, citing the significant impact of housing costs on inflation. With 105,750 households in temporary accommodation, Generation Rent calls for a permanent LHA link, alongside increased government efforts to build more social homes, providing alternatives to the strained private rental sector.