The Impending Private Sector Housing Crisis in Hartlepool: Rising Rents, Static Welfare Benefits, and Worsening Poverty...
- teessidetoday
- Apr 26
- 6 min read
Hartlepool's seeing private sector rental prices skyrocket for even some its most lowest demand homes, sparking claims demand is rapidly outstripping supply as homelessness figures soar ..
26th April 2025
Hartlepool may be painted by some as a picturesque costal town that would appeal to someone perhaps looking for the calmer pace of life after working in a major city, however its claimed a quiet but alarming crisis is starting to unfold in the areas private rental sector. Whilst the town has long grappled with economic challenges, including high deprivation, unemployment and some parts of the town being plagued by crime and anti-social behaviour (ASB), its claimed a sharp rise in rental prices is now pushing many low-income families living in the town to the brink. Even in some of Hartlepool’s most lowest-demand areas, such as Dent Street, Sherriff Street & Elliott Street, all just within a short walking distance of the towns Shopping Centre, rents are said to be climbing at an unprecedented rate, far outpacing stagnant Local Housing Allowance (LHA) rates. This growing disparity is said to be exacerbating poverty, threatening housing stability, and raising concerns about a looming housing crisis in the town. In this article, we going to explore the factors driving this trend, its impact on local families, and what it means for Hartlepool’s future.
The Rental Surge in Low-Demand 'high crime' Areas
Hartlepool’s private rental market is undergoing a dramatic shift. Areas such as Raby Road, & other Town Centre area properties historically considered low-demand due to high levels of crime, ASB, and poor housing conditions, are now seeing rental prices soar. For example, just two years ago, a two-bedroom property close to Hartlepool's Town Centre could be rented for around £400 per calendar month (PCM). Today, similar properties are being listed for £550PCM—a 30% increase in a short period. This trend isn't isolated, but reflects a broader pattern across Hartlepool’s private rental sector, where demand for affordable housing is now vastly outstripping supply, even in areas once overlooked by landlords and tenants alike.
Nearby Oxford Rd, about ten minutes walk from Hartlepool's town centre faces similar challenges. A 2020 report by Hartlepool Borough Council highlighted issues such as poor housing conditions, high levels of void properties, and crime. Properties in these areas often have low market values, with median house prices in Oxford Rd reported to be just £26,000—with many said to be owned by landlords who struggle to maintain them. Despite these challenges, the rental market is tightening, driven by a shortage of affordable housing. as well as increasing demand from tenants who have few alternatives & find accessing social housing in the area hugely complex....
Static Local Housing Allowance Rates
Compounding the problem is said to be the stagnation of Local Housing Allowance (LHA) rates, a vital support for many low income households which determines the maximum amount of housing benefit or Universal Credit housing element that low-income tenants can receive. In Hartlepool, the LHA rate for a two-bedroom property has remained static at £409.14 PCM since April 2020, despite significant rental inflation. This rate is based on the 30th percentile of local market rents, intended to cover the bottom third of the private rental market. However, with rents rising rapidly, the LHA no longer reflects the true cost of renting in Hartlepool & its beginning to hit tenants living in the town hard.....
Taking an example of a property durham&teessidetoday found on the Rightmove website. For a family renting a two-bedroom property on the Owton Manor Estate at £650 PCM, LHA will only cover around 63% of the rent, leaving a shortfall of £240.86 PCM for a typical household to find. For low-income households, many of which rely on welfare benefits or low-paid jobs, this gap is often unmanageable. According to a 2025 report by Crisis, fewer than 3% of private rental properties in England are affordable for those in receipt of housing benefits or the housing element of Universal Credit, a sharp decline from 12% in 2021-22, even after LHA rates were increased in April 2024 to reflect the September 2023 rental figures. In Hartlepool, the situation is no less dire, as families are forced to dip into already stretched budgets to cover rent, often at the expense of essentials like food, utilities, or clothing.
The Poverty Crisis in Hartlepool is Deepening
The mismatch between rising rents and static LHA rates is pushing Hartlepool’s lowest-income families ever deeper into poverty. Nationally, private sector rents have risen by 45% over the past decade, far outpacing wage growth and welfare benefit increases. In Hartlepool, where economic deprivation is already acute, this trend's particularly devastating. The Resolution Foundation notes that 20% of UK tenants now spend more than half of their income on rent, and in low-income areas like Hartlepool, the proportion can be even higher.
For families living in areas such as Hartlepool's Owton Manor and similar estates, the rising cost of rents isn't just a financial strain—it’s a threat to their housing stability. Many are now being forced to choose between paying rent and meeting other basic needs, leading to a cycle of debt and arrears. The lack of affordable social housing is said to be exacerbating the problem, with Hartlepool seeing a decline in social housing stock & waiting lists growing, as local councils across the country ship many of their homeless into areas such as Hartlepool & County Durham, further worsening the problem for locals living in the town. A 2024 report by the National Housing Federation estimates that England now needs around 90,000 new social homes annually to keep up with demand, yet only 9,535 were built in 2022/23. In Hartlepool, this shortage pushes more families into the private rental sector, where they face skyrocketing costs and insecure tenancies..
Moreover, the recent landlord exodus caused by the Labour Governments changes to capital gains tax forcing many landlords to sell their portfolios, Hartlepool Borough Councils suggestion they're getting set to licence landlords & the general poor condition of many private rental properties Hartlepool adds insult to injury. The English Housing Survey 2023-24 found that 1.3 million homes in England have damp issues, with 1.2 million of those properties failing to meet the decent homes standard due to inadequate thermal insulation. In Hartlepool, where properties in low-demand areas often suffer from persistent neglect, tenants paying sums in excess of £650 PCM for a two-bedroom home may still face cold, damp conditions that eventually harm their health and wellbeing. This combination of high costs and poor quality homes is a key driver of the poverty crisis, as families become trapped in substandard housing they can barely afford....
A Looming Housing Crisis
If current trends continue, its certain Hartlepool is to face an impending housing crisis that could mirror the national picture.
Across the UK, homelessness is rising, with 354,000 people in England said to be classified as homeless as of December 2024, including 161,500 children. In Hartlepool, the combination of rising rents, static LHA rates, and declining social housing stock is pushing more families toward housing insecurity. The Crisis charity warns that freezing housing benefits will lead to increased homelessness, overwhelming local councils already struggling to provide temporary accommodation for those it already has on their lists.
The situation in Hartlepool is said to be underscoring the need for urgent action. Nationally, housing charities and think tanks are calling for measures such as unfreezing Local Housing Allowance rates to reflect current market rents, introducing rent controls, and more investment in social housing. In Hartlepool, local solutions could include, increasing funding for neighbourhood renewal projects, and pressuring landlords to improve property standards. However, its claimed without some serious intervention, the gap between rents and welfare benefits will continue to widen, trapping more families in a cycle of poverty and pushing others into homelessness.
