Britain’s housing support bill is forecast to reach a new high in 2026-27, underlining how much pressure remains in the rental market and why landlords should keep a close eye on affordability, tenant communication and local demand.
Figures reported from Department for Work and Pensions projections put spending on housing benefit and the housing element of Universal Credit at £38.8bn for 2026-27. That is said to be £913m higher than the previous year and around 40% above the level recorded in 2018-19.
For landlords, the headline is not simply about government spending. It is a sign that more households are relying on help with housing costs at the same time as rents, supply constraints and affordability checks remain central to the way tenancies are agreed and managed.
What the latest figures show
The reported DWP projections point to housing support spending reaching its highest real-terms level since comparable records began in 1970. Around 5.95 million people across England, Wales and Scotland are expected to receive housing support this year, according to the same report, up by about 1.2 million compared with 2019-20.
The increase is being linked to higher rents and a shortage of housing supply. Private rents have risen sharply since the start of the pandemic, while the supply of both social housing and new homes remains under pressure. The DWP bill is also forecast to rise further, with spending expected to reach around £40bn by 2030-31.
More than a third of the reported housing support spend goes to landlords in the private rented sector. That reflects the private rented sector’s role in housing households who might otherwise depend on a larger social housing stock.
Why this matters for private landlords
Many small landlords will already be aware that affordability is now one of the hardest parts of the letting process. The new figures reinforce that this is not confined to one city or one tenant group. Housing costs are putting pressure on a broad range of renters, and that pressure can show up in applications, referencing, renewals and arrears management.
The practical point is to treat housing support as part of normal market reality, not as a side issue. Landlords and agents may see applicants whose income includes Universal Credit housing costs, legacy housing benefit, wages, pensions or a mixture of sources. The key is to handle affordability checks consistently and fairly, while making sure decisions are recorded clearly.
This also sits alongside wider Renters’ Rights changes. Here4 Landlords recently covered the government’s updated rent in advance guidance, which is relevant where landlords or agents ask for upfront payments before a tenancy starts. It is sensible to look at affordability, rent-in-advance wording and applicant communication together, rather than treating them as separate admin tasks.
Do not confuse affordability checks with blanket exclusions
A higher housing support bill does not mean landlords must accept every application, and it does not remove the need for responsible referencing. But it is a reminder that blanket wording can be risky and commercially unhelpful.
Landlords should be careful with phrases in adverts or agency templates that suggest applicants receiving benefits will not be considered. The Renters’ Rights framework has sharpened attention on rental discrimination, including unfair treatment of people who receive benefits or have children. Even where a landlord has legitimate affordability concerns, the process should be based on the facts of the individual application.
A better approach is to set out the rent, deposit, permitted upfront payment requirements and referencing process clearly. If an applicant’s income includes benefits, the question should be whether the overall affordability position works, not whether one source of income is automatically unacceptable.
What landlords should watch now
First, monitor local rent levels with care. National figures can hide large regional differences, and the latest market reports continue to show some areas rising while others soften. A rent that looks normal on a portal may still be hard for local applicants to sustain if wages and support levels do not keep pace.
Second, keep communication practical and documented. Where tenants are under pressure, early contact can be more useful than waiting until arrears become serious. Clear records of rent discussions, payment plans and signposting can also help if a dispute later arises.
Third, check agent processes. If a letting agent handles adverts, viewings, referencing and applicant messages, landlords should ask how the agent deals with benefit income, affordability assessments and rent-in-advance requests. Standard templates can become outdated quickly when regulation changes.
Fourth, think about repairs and property standards as part of affordability. If tenants are paying a high proportion of income towards rent, unresolved repair issues can escalate disputes quickly. Our earlier piece on housing hazards and warning signs explains why record-keeping and timely follow-up matter.
The wider market signal
The record housing support forecast is also a wider supply signal. If more households need help with housing costs while new supply remains constrained, landlords are likely to keep operating in a market shaped by strong demand, affordability strain and close political scrutiny.
That does not mean every landlord should change strategy because of one set of spending figures. It does mean the direction of travel is worth noting. Affordability, fair access, local authority enforcement and tenant communication are becoming more connected.
The practical takeaway is straightforward: keep adverts and applicant checks fair, avoid blanket exclusions, review rent-in-advance wording, and make sure records explain how decisions were reached. This is not legal or financial advice, but it is sensible housekeeping in a rental market where housing support is playing a growing role.
