A charity claims that private renters are about twice as likely as the general population to be in problem debt.
StepChange, via an opinion poll survey, claims that the number of private renters in problem debt has risen sharply from 800,000 people in January to 1.1m people this month. In addition over 1.2m private renters - equivalent to 17 per cent - are using credit to make ends meet.
And two thirds of tenants whose rent has increased say this has had a negative impact on their mental health.
StepChange also claims that private renters struggle with the affordability of their homes more than any other housing tenure. Average monthly private rent payments were found to be almost double those in the social sector, and 39 per cent more than average mortgage payments, while 78 per cent of private tenants who receive housing support say that support does not cover all of their rent costs.
The charity is calling on government to go further than those elements contained in the recently-published Renters Reform Bill and “increase funding to help struggling PRS renters who face acute affordability pressures, fall into arrears or cannot meet one-off costs such as house moves.”
It also wants an increase in housing benefit “to cover the real cost of rent” and enforce “affordable repayment plans” are put in place for at least some tenants in arrears.
A StepChange spokesperson says: “Everyone deserves to live in a house they can call home, but this is becoming increasingly out of reach for a growing number of private renters. Against the backdrop of a frenzied rental market, where bidding wars, sky-high deposits and rising rents are commonplace, those who are financially vulnerable are often left with no choice but to take on unaffordable, insecure, poor-quality accommodation just to keep a roof over their heads.
“The government’s Renters’ Reform Bill will rightly withdraw landlords’ rights to carry out no-fault evictions, but there is more to do to protect those who should be in socially rented accommodation but have no hope of accessing it. Unless we see benefits that cover the real cost of renting, alongside strengthened rules that protect financially vulnerable tenants who fall behind on their rent, the cycle of debt and housing insecurity will be doomed to repeat itself for millions of people.”
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.jpg)
%20(002).png)
.png)
Join the conversation
Jump to latest comment and add your reply
Part of the problem is that Social rents are too cheap and there is no real mechanism to ensure these properties are exclusively for the lowest paid tenants. High paid Trade Union leaders living in bargain Social Housing springs to mind. Why are Social rents below LHA?
Comparing rents with average mortgage payments is a ridiculous comparison. Rents are real time, mortgages are on properties that may have been bought at any time over the last 25 years, so of course historic prices will pull down the average. Also most homeowners have put down a massive deposit so the mortgage is only on 60% or 75% of the value of the house. Then there's insurance and maintenance to take into account.
Renters are sometimes not very good at budgeting and have strange spending priorities. One of mine pays his rent in installments but has frequent Deliveroo deliveries and quite an online shopping habit. His flat is full of electronics but new shoes or trousers often derail his rent payments. To be fair his employer makes things as difficult as possible by paying fortnightly and randomly paying holiday pay throughout the year instead of during the Christmas shutdown. This completely messes up his UC claim numerous times throughout the year and costs him a lot more than it should in NI contributions.
Another tenant is 5 weeks behind with rent because UC is designed that way. Absolutely horrendous for his mental health as he has never been in debt before in his life. Every time he sees me he says he'll move out if I want and that he's really embarrassed about the rent arrears.
So clearly the system isn't working at certain points.
Social housing is poorly targeted and too cheap.
UC doesn't work with tenancy agreements or anything other than monthly salaries. It has been deliberately designed to put people in debt from day one. How many claimants are paying sky high interest rates on debt that has only been incurred because of the 5 week wait?
I get a year up front , problem solved
Isn't that one of the red flags for cannabis farms or other undesirable activities?
Michael Gove certainly created a lot of debt for Tenants driving up Rents by driving out landlords.
Michael Gove has also created many problems for landlords including me. Tenants attitudes are changing because of his interference they know they can’t be put out and Landlords are powerless.
Tenants that were very happy before now becoming a nightmare, they didn’t have a rent increase in 5 years + I now asked for £50 pm increase for this 3 story 4 double bedrooms Town house (they are double) and living room open plan kitchen to make it £1600. pm but they started this refurbishment excuse malarkey, it was in good condition when they took it and I believe it still is quiet good apart from any damage they done all my door closers gone for a start and the notice Board.
There was a great of work done for HMO and that was thoroughly inspected and re-inspected after the to do list she (the inspector) wanted, you’ll know her she featured in many Council’s Enforcement TV Programmes she is severe.
Anyway the House is currently at least £800.00 pm below Market Rent for the area, then this is my thanks.
Well done Mr Gove you know best.
This is also my fear. Good tenants free to turn bad. Ones that were happy now having power over their landlord. Friends, charities, councils, the press and the government all in their ear saying 'make the landlord do this and that' and 'your rights (over someone else's property are...'
On here some LL are selling with good tenants of many years. Now they are kicking off as they will find it harder to find somewhere else to go. Without interference everything would have just carried on.
Stepchange Charity just doesn't understand.
It states "there is more to do to protect those who should be in socially rented accommodation but have no hope of accessing it".
NO: the answer is more socially rented accommodation; not more impositions on private landlords which will only lead to less private rented sector stock, and even higher rents,
Get a brain Stepchange.
Please login to comment