• New research from Crisis and Citizens Advice highlights the severity of Britain’s affordability crisis as a coalition of organisations call for housing benefit to be unfrozen so that people can afford to find and keep a roof over their head
•  So far in 2026, Citizens Advice has helped more than 100 private renters a day with housing benefit issues, while the number of private renters helped with housing benefit who've also been referred to foodbanks has soared by almost 80% since 2021/22

New research from a coalition of organisations led by Crisis and Citizens Advice has revealed the extent of Britain’s cost of living crisis, with fewer than two in 100 private rental properties listed in Britain (1.9%) now affordable for people on housing benefit, according to data from Zoopla. This is pushing low-income households into debt, poverty and homelessness, with record numbers of families in temporary accommodation. 

The two organisations – alongside Justlife, Shared Health, St Mungo’s, Centrepoint, Independent Age and Shelter – have united to expose the damaging consequences of the freeze on housing benefit for different sections of society, including older people, families and landlords.

Housing benefit is a vital lifeline for millions of people, supporting low-income households and preventing homelessness. But since 2012, local housing allowance rates have been subject to cuts and frozen for long periods by successive governments – having most recently been frozen in 2024. The ongoing freeze has widened the gap between the rates of local housing allowance people receive and the actual costs of renting, leaving households having to cover significant and growing shortfalls. Across Britain, the average gap between housing benefit and the cheapest third of rents for a two-bedroom home was £403 per month according to new research from Crisis and Zoopla.

The report includes a nationally representative poll from Citizens Advice that reveals almost half of private renters (48%) receiving Universal Credit in the UK have had to cut back on essentials like food, transport and energy costs in the last six months. At the same time, the charity is supporting a growing number of those facing some of the most severe consequences of cutting back. In 2025/26 Citizens Advice’s frontline advisers helped more than 6,600 private renters in England and Wales with housing benefit issues to access food banks, a staggering 79% increase on just under 3,700 in 2021/22.

The continued freeze on local housing allowance means that fewer than 2% of properties are now affordable for those on housing benefit across Great Britain, according to new research from Crisis and Zoopla - down from 2.7% the previous year. The situation is bleak across the country. Only 1.2% of properties in London were considered affordable, but the pressures were not limited to urban areas or the South of England.  Wales is the most impacted nation with just 0.7% of properties advertised for private rent affordable for households relying on housing benefit, compared to 1.8% in England and 5.5% in Scotland. 

With so few affordable homes on the market, both organisations have found that their services are having to cope with increased demand as people struggle to find suitable housing. Citizens Advice has seen the number of private renters with housing benefit issues needing support with rent arrears increase by nearly 20% over the past four years. And those who also needed advice on homelessness rose by almost 60% (58%) over the same period. So far in 2026, the charity has helped more than 100 private renters a day with housing benefit problems.

Together, the organisations are calling for the UK government to unfreeze housing benefit so it covers the real cost of renting. Without urgent action, the coalition is warning that more households will be pushed into poverty and homelessness.

Matt Downie, Chief Executive at Crisis, said: “Across Britain, people on low incomes are facing an impossible situation. With housing benefit frozen, more and more people are struggling to cover the cost of rent and essentials like food and bills – forcing them into a cycle of debt, poverty and homelessness.

“What’s more, the freeze puts unsustainable pressure on an already overworked system. With local authorities already under immense strain and temporary accommodation costs at an all-time high, without urgent change we will only see more people trapped in this vicious cycle.

“To bring rates of homelessness down we must have a welfare system that supports people on the lowest incomes. It’s crucial that housing benefit is uprated to cover the cheapest third of rents so it can work as intended and so that no one is faced with the trauma of losing their home.” 

 Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “Many families are already at breaking point, cutting spending back to the bone and still finding themselves unable to pay the rent or put food on the table.

“Every day our advisers are hearing from more and more people who have simply run out of options. While housing benefit remains frozen, rents are spiralling - meaning private renters are cutting back, going without, or falling deeper into debt.

“If the government is serious about turning the tide on the cost of living crisis, getting to grips with the soaring cost of housing is essential. Private renters are struggling to keep their heads above water - unfreezing housing benefit would throw them a vital lifeline.”

Paul Whiteheard, CEO at Zoopla said: “Our analysis lays bare the extent of the affordability challenge facing low-income renters across Britain. For far too long the number of private rent homes has remained static while demand has boomed, pushing up rents and squeezing those on lower incomes. 

“Growing the supply of rented homes is the primary route to improving affordability over the long run. In the short term it is vital that the UK Government unfreezes housing benefit so that it remains linked with the real cost of renting. Without this, we will only see more people facing the risk of homelessness.” 

 

-Ends-

Notes to Editor

Zoopla data

Analysis of Zoopla listings and LHA rate affordability Zoopla listings data was used for one to three bedroom properties in England, Scotland and Wales listed on Zoopla between the 1st April 2025 and 31st March 2026. This set includes 817,423 listings.

You can find the full report here.