Difficulty accessing socially rented homes means some families need close to 拢8,000 extra a year to live decent lives

Politics
An aerial view of a council estate

Families now need almost 拢8,000 a year more to achieve a minimum acceptable standard of living because affordable social housing is no longer a realistic option for many, according to new research.

For the first time in the 18-year history of the Minimum Income Standard (MIS), members of the public said households could no longer reasonably expect to secure a social rented home if they needed one.

As a result, researchers have calculated the minimum budgets families need on the assumption they must rent privately [1], dramatically increasing the income required for a decent standard of living.

For out-of-work parents, this means benefits only cover around a third of what is needed for an acceptable living standard and their incomes still fall far below this benchmark when working full-time on the National Living Wage.

Pensioners with the state pension as their sole income come closer to reaching a minimum living standard but still fall short. 

Dr Chloe Blackwell, from the Centre for Research in Social Policy (CRSP) at 海角社区 University, said: “While a renewed commitment to improving living standards in the UK, signalled by Prime Minister Andy Burham, is good news for low-income households, tackling the high and rising cost of housing needs to be at the forefront of any plans to reduce the cost of living.

“Private renting has become the only real option for more and more people in the UK, with many households facing crippling costs just to keep a roof over their heads.

“If this continues, we can expect to see the gap between incomes and needs widen further, leaving even more households far short of reaching a decent standard of living.

“Housing pressures have deeply affected people’s everyday experiences, and the public no longer see access to social housing as a realistic assumption.

“When the cost of securing a home absorbs such a large share of a household’s income, finding the money to cover everything else is much harder.

“Improving living standards requires more than increasing incomes alone. Without addressing the affordability and availability of housing, many households will continue to find that gains from higher wages or benefits are quickly outweighed by rising housing costs.”

Members of the public felt the wait for a home is too long, something JRF research shows stems from the failure of successive governments over the last three decades to build and retain enough social homes.

This means all MIS budgets now include the cost of rents in the private rented sector.

Professor Matt Padley, Co-Director of CRSP, said: “Our latest MIS research highlights the consequences of political decisions and inaction over a long period, which mean that we simply do not have the social housing we need to ensure that all households have a safe, secure and affordable place to live.

"No one would dispute that adequate, accessible housing is fundamental to a decent standard of living, but years of under investment have undermined this key pillar of our welfare state.

"It’s crucial that the government acts quickly to, literally, rebuild this key part of the safety-net”

The Joseph Rowntree Foundation (JRF), who fund the work, suggested that this change speaks to a developing theme within the MIS research of the public questioning whether they can count on key functions of the state, including social housing and the NHS.

This follows the introduction in 2024’s MIS of a £200 annual budget to pay for health-related services, deemed necessary because of long NHS waiting lists. 

Social rents are regulated and set against local incomes, however there are minimal restrictions on levels of private rents, so these are much more expensive. [2]

The amounts households need to reach a minimum acceptable standard of living have therefore increased: 

  • Lone parents with two children now need £67,600 to reach MIS when renting privately (compared to £59,800 in social housing), almost £8,000 more per year.  
  • Couples with two children now need £77,400 per year between them or £38,700 each to reach MIS when renting privately, (compared to £73,600 or £36,800 each in social housing), almost £4,000 more per year.  
  • Single pensioners now need £21,300 per year to reach MIS when renting privately (compared to £15,900 in social housing), over £5,000 more. 

This has meant families’ struggle even more to reach a minimum acceptable standard of living, whether through out-of-work benefits or through working on the National Living Wage (NLW): 

Lone parents  

  • Out of work benefits leave lone parents with only 36% of MIS after housing costs compared to 43% in 2025. They would reach 44% of MIS if they were still living in social housing.  
  • Part-time work brings lone parents to 59% of MIS compared to 61% in 2025. They would reach 62% of MIS if they were still living in social housing.  
  • Full-time work leaves lone parents with only 67% of MIS due to the Universal Credit taper and the cost of additional childcare compared to 68% in 2025. They would reach 70% of MIS if they were still living in social housing.  

Couples with two children 

  • Out of work benefits leave couples with two children with only 28% of MIS after housing costs, compared to 36% in 2025. They would reach 35% of MIS if they were living in social housing.  
  • Both parents in full-time work on the NLW still only have 80% of MIS compared to 81% in 2025. They would reach 83% of MIS if they were still living in social housing.  

Pensioners 

  • State Pension or Pension credit leaves single pensioners with 90% of MIS after housing costs, compared to 95% in 2025. They would reach 97% of MIS if they were still living in social housing.  

For families who are out of work or on a low income, the support they can receive to help pay their rent through Universal Credit is restricted by the Local Housing Allowance, which has been frozen since 2024. [3]

High rents in the private rented sector are also undoing some of the government’s efforts to help families with the cost of living. These include increases to the National Living Wage, uprating the basic rate of Universal Credit by more than inflation and expanded childcare support.  

The government has committed to building more social and affordable homes, as well as introducing tenant protections as part of the Renters Rights Act.

However, it will take many years for the new homes currently being built to make a difference, with rents forecast to continue to absorb all average wage growth until at least the end of the decade. [4]

This will put continued pressure on families already struggling to meet their needs.  

The JRF argues that the scale of the affordability crisis for private renters warrants introducing rent controls. [5]

Darren Baxter, Housing Lead at the , said: “We are no longer living in a world where privately rented homes are a temporary pit stop for young, single professionals.

“They’re now the homes where families are bringing up their children, from babies to teenagers, as well as where people are growing old. But the eye-watering rents that people are paying are denying them the stable foundation they need for a good life.

“Families can’t wait the decades it will take for the new homes currently being built to have an impact on their rents – their children will be adults by then. But unaffordable private rents aren’t a given.

“Rent controls would be the solution that would give families security and stability and they should be implemented without delay.”

To read the full report, visit .

ENDS

Notes for editors

Press Release Reference: 26/198

  1. Budgets for each family type are calculated following detailed group discussions among members of the public about the things a family needs to achieve an acceptable living standard. The baskets of goods and services required are costed to compile the budgets for each family type.  
  2. In 2024/25, the mean rent for households renting privately was almost twice that for those in the social rented sector (£250 versus £129 per week), and private renters spent on average 34% of their income on rent, compared with 28% for social renters. 
  3. Fewer than 2% of properties listed on Zoopla in 2025/26 were affordable for renters on housing benefit.
  4. Office for Budget Responsibility (2026) Economic and fiscal outlook – March 2026
  5. To prevent landlords from rapidly selling up under a rent control, JRF has that a tax break should be given to mortgaged landlords who would be more exposed to unprofitability. This should be paid for by charging landlords National Insurance Contributions (NICs) on their rental income, which would primarily affect landlords who own their properties outright and have been making above normal profits due to this favourable tax treatment.

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