According to a report released today by StepChange Debt Charity, private renters are twice as likely to be mired in problem debt compared to the general population.
The findings indicate that approximately 1.2 million private renters, representing one in six, are relying on credit to make ends meet, highlighting a private rental market failing to accommodate financially vulnerable tenants.
“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,” said Richard Lane, StepChange director of external affairs.
The ‘Trapped in Rent’ report scrutinises a private rented sector (PRS) that is increasingly unaffordable, inaccessible, and insecure for low-income individuals, heightening their risk of problem debt and prolonged housing insecurity. Alarmingly, 15% of private renters, equivalent to 1.1 million people, are in problem debt.
The Renters (Reform) Bill, which aims to ban ‘no-fault’ evictions, was welcomed by StepChange but the charity emphasises that the bill does not go far enough to address the financial challenges faced by private renters.
Lane added: “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.”
With rent increases affecting half of all private renters in the past 12 months and over 1.2 million private renters resorting to credit to survive, the problem is escalating. Furthermore, these rent increases have negatively impacted the mental health of two-thirds of these renters.
Lane asserted that although the Government’s Renters’ Reform Bill is a positive step, “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.”
StepChange is urging the Government to introduce stronger protections for those falling behind on their rent, call for increased funding to support struggling PRS renters, restore housing benefits to cover the actual cost of rent, and implement protocols to prevent unnecessary evictions due to arrears.
