Landlords alerted to the anticipated surge in rent debts amounting to approximately £220 million
In a recent analysis by Housemark, a UK housing data specialist, it has been estimated that social housing tenants in 2024 could face a potential sector-wide increase in rent arrears of £220m due to a mismatch between rising rents and housing benefit payments.
This issue comes at a particularly difficult time for tenants, as they are already facing challenges due to the cost-of-living crisis. Jonathan Cox, director of data and business intelligence at Housemark, highlighted this concern, stating that the issue is particularly acute in London, where only about 5% of private rented homes are affordable to those on housing benefits.
The analysis shows that in 2022/23, eviction rates dropped significantly, with no evictions recorded at the height of the pandemic in 2020/21. However, this decrease in eviction rates corresponds with an increase in rent arrears during the same period. Rent arrears rose from 2.47% in 2018/19 to 3.35% in 2022/23.
Housemark emphasized the need for landlords to continue monitoring the impact of policies, events, and circumstances that could push tenants into debt and adversely affect income management. Cox also mentioned that fuel poverty is impacting gas servicing, and support agencies are reporting record volumes with depleted budgets and resources.
The most recent Pulse report has drawn similarities between these trends, suggesting that the current financial year will have 53 'rent weeks', while Universal Credit housing payments only cover 52 weeks. This discrepancy could put additional pressure on tenants already struggling to keep up with rent payments.
In response to these challenges, stakeholders call for more social housing supply and policies to boost affordable homes. They also advocate for reforms to encourage landlords to bring empty homes back into use and support measures to improve rent access and security for vulnerable tenants impacted by benefit limitations.
While comprehensive measures are in discussion, social housing tenants in 2024 face tightened affordability and the risk of arrears due to the continuing disconnect between rents and housing benefit levels in key urban areas like London.
It is important to note that the estimate of a potential sector-wide increase in rent arrears in 2024 is based on data collected and analyzed from 149 UK social landlords over April 2024 through Housemark's monthly Pulse Survey. Landlords and housing sector trade bodies have indicated that tenants receiving Universal Credit will need to cover one week's rent from alternative income sources in 2024 due to the way calendar dates fall.
However, as of the latest 2025 Housing Ombudsman report, no direct reference was found addressing this mismatch specifically. The report notes ongoing housing service improvements and standards enforcement that may indirectly impact tenant outcomes.
This news serves as a reminder of the ongoing challenges faced by social housing tenants and the need for continued support and policy reform to ensure affordable and secure housing for all.
- With the anticipated rise in rent arrears for social housing tenants of £220m in 2024 due to a mismatch between rising rents and housing benefit payments, there is a call for more social housing supply and policies to boost affordable homes.
- The disconnect between rents and housing benefit levels, particularly in key urban areas like London, is set to tighten affordability for social housing tenants in 2024, increasing the risk of arrears.
- To address this issue, stakeholders are advocating for reforms to encourage landlords to bring empty homes back into use and support measures to improve rent access and security for vulnerable tenants impacted by benefit limitations.
- In light of the ongoing challenges faced by social housing tenants, it is crucial to continue monitoring the impact of policies, events, and circumstances that could push tenants into debt and adversely affect income management.
- The current financial year is projected to have 53 'rent weeks', while Universal Credit housing payments only cover 52 weeks, potentially putting additional pressure on tenants already struggling to keep up with rent payments.
