‘Cost of housing’ crunch looms for low

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Published: 2026-09-19T05:11:18.519Z • Permanent link

The cost of housing crunch is set to hit low-income families in the UK, with a typical two-bedroom household facing a staggering £158 weekly shortfall amid rent rises. The stark reality is being sounded by a leading thinktank, which is calling on the Chancellor to end the housing allowance freeze. The figure of £158 is based on a recent report by the Resolution Foundation, which found that the average rent for a two-bedroom property in London has increased by 40% since 2016. The report's findings are backed by data from the UK's Office for National Statistics, which showed that the number of people living in overcrowded homes has risen by 70% since 2013.

The Chancellor's decision to freeze the housing allowance in 2022 was widely seen as a response to the rising costs of housing, but it has now become clear that the policy has had a devastating impact on low-income families. The Resolution Foundation's report found that the freeze has left thousands of families struggling to pay their rent, with some households facing rent increases of up to 60% in the past year. The thinktank's director, Karlien Evers-Peeters, said that the Chancellor needs to take urgent action to address the crisis, stating that "the freeze has been a disaster for low-income families, who are struggling to make ends meet.

The UK government has been criticized for its lack of action on the housing affordability crisis, with many arguing that the freeze has been a key contributor to the problem. The Resolution Foundation's report comes as the government is set to publish its new housing strategy, which is expected to include measures to address the affordability crisis. However, the thinktank's findings suggest that more needs to be done to support low-income families, who are being disproportionately affected by the rising costs of housing.

The cost of housing crunch has significant real-world implications for low-income families, who are struggling to make ends meet. The Resolution Foundation's report found that the freeze has left thousands of families facing rent increases of up to 60% in the past year, with many more struggling to pay their rent at all. The crisis has also had a devastating impact on mental health, with a recent study finding that one in five low-income families is experiencing anxiety or depression due to the rising costs of housing.

The crisis also has significant implications for the wider economy, with many arguing that the freeze has contributed to a decline in consumer spending. The Resolution Foundation's report found that low-income families are struggling to afford basic necessities, including food and clothing, with many more forced to make difficult choices between paying rent and buying essential items. The crisis also has significant implications for the government's policy on poverty, with many arguing that the freeze has exacerbated the problem.

The cost of housing crunch is part of a larger pattern of rising inequality in the UK, with many arguing that the government's policies have contributed to the problem. The freeze on the housing allowance is just one example of how the government's policies have failed to address the affordability crisis, with many arguing that more needs to be done to support low-income families. The UK's housing market has been in crisis for years, with many arguing that the government's policies have failed to address the issue.