Nearly two-thirds of working private renters in England struggle to pay rent
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Version 0 of 1. Exclusive: Shelter poll shows housing crisis is causing hardship even for those with jobs Nearly two-thirds of workers living in private rented housing struggle to pay their rent, according to a poll that shows how England’s housing crisis is causing financial hardship even for those with jobs. Only 32% of workers said they were able to keep up on their rent payments without difficulty, the poll by YouGov for Shelter shows, with 40% sometimes struggling and 23% constantly struggling. Three per cent of workers say they are falling behind on their payments, in line with recent government figures which show 5% are or have previously been in arrears. The figures come amid a concerted push from businesses, unions and charities to persuade the UK chancellor, Rachel Reeves, to commit billions of pounds to social housing in next year’s spending review. They argue that building more low-cost rented housing would help alleviate the demand pressures in the private sector, which experts say are pushing prices higher. Twenty-three directors, chief executives and general executives have signed a letter to Reeves asking her to spend enough to build 90,000 new social rented housing each year during the parliament, at a cost of up to £11.5bn. They include Peter Jelkeby, the chief executive of Ikea UK, Polly Neate, the chief executive of Shelter, and Sharon Graham, the general secretary of the Unite union. The letter, which the Guardian has seen, says: “As businesses, trade unions and third sector organisations, we have come together to express our concern about the devastating impact the chronic shortage of social housing is having on our society, our businesses, and our workforce and productivity. It adds: “Worryingly, YouGov polling for Shelter reveals that two-thirds of working private renters, 4,450,000 people, are falling behind or struggling to pay their rent, showing the housing emergency the government inherited is only getting worse. “As we enter 2025, we must get serious about ending the housing emergency that is holding our country and our economy back. Together, we are asking you to use the forthcoming spending review to invest in building 90,000 social rent homes a year for 10 years. “Social rented housing is the only genuinely affordable housing by design, as rents are tied to local incomes. What’s more, history and research both show that without major social housing investment and a major boost to council housebuilding, the government cannot deliver its election promise to build 1.5m homes.” Labour has promised to tackle the country’s housing crisis with a pledge to build 1.5m homes over the parliament, promising to liberalise the planning regime and make it easier to purchase land for building. Reeves is under pressure to commit a significant amount of money to social housing as well, with campaigners warning that the 1.5m target will not be hit without councils and housing associations being given billions more every year. A report earlier this year by Shelter and the National Housing Federation found that hitting the target would require 90,000 new social rented homes to built every year by the end of the parliament. The study found the cost of doing so would be £11.5bn, though the report’s authors argue the costs would be recouped within three years. Reeves will announce at the spending review in June how much she intends to spend on the affordable homes programme over the next few years. The previous government committed £11.5bn over a five-year period until 2026, but that money has already run out, prompting the chancellor to put in an extra £500m at October’s budget. Reeves has also promised to raise social housing rents by one percentage point above inflation every year for the next five years in a bid to improve the finances of housing associations. However, the chancellor is under pressure from the housing secretary, Angela Rayner, to substantially increase the size of the affordable homes programme when she announces new funding for it in June. Rayner told this year’s Labour party conference that the government had a “moral mission” to build enough social housing, and has already announced plans to make it harder for tenants to buy their own council homes as one way to boost the country’s social housing stock. Rayner is understood to be pushing for a major increase in funding for new building next year. |