Research from the Centre for Research in Social Policy (CRSP) at Loughborough University indicates that many households in the private rented sector are unable to afford the income required for a minimum acceptable standard of living. The Minimum Income Standard (MIS) report suggests that despite recent policy efforts, numerous households still fall short of this income.
The report claims that the transition from social housing to private renting has increased the income needed to meet the MIS for pensioners and households with children. For instance, a single pensioner reportedly requires around £5,000 more per year in the private rented sector than in social housing to reach the MIS. A lone parent with two children now needs £67,600 when renting privately, which is almost £8,000 more than if they were in social housing, while a couple with two children needs a combined income of £77,400.
Dr Chloe Blackwell from CRSP stated that tackling high housing costs must be central to efforts to reduce the cost of living, noting that "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."
The report also highlights the impact of freezing the Local Housing Allowance (LHA), which restricts the housing element of Universal Credit for those out of work or on low incomes. The LHA has been frozen since 2024, when it was temporarily re-linked to the 30th percentile of rents. This freeze has reportedly resulted in an estimated 6% reduction in disposable income by October 2025 for those affected, with greater losses for the lowest income households.