A third of renters have used some form of credit to cover the cost of their rent over the past year, new figures suggest.
It’s the latest evidence of how record rents and the cost of living crisis are taking their toll on renters.
And it has led Peter Tutton, of StepChange – the debt charity which carried out the research – to describe the rental sector as “increasingly unaffordable” with tenants “barely getting by”.
A third of tenants have used some type of credit to cover the cost of their rent, according to the latest survey
He said: ‘We have reached a point where renting in the private sector is increasingly unaffordable.
‘However, the growing shortage of social housing means that more and more financially and otherwise vulnerable people have no choice but to do so.
“Soaring rents and increasing cost of living pressures mean millions of private renters are scraping by or relying on credit to pay their rent.”
A total of 31 per cent of private renters have used a form of credit to ensure they can pay their rent in the last 12 months, up from 28 per cent in January 2024, according to the survey of more than 2,000 people.
The survey went on to reveal that half of renters have found it difficult to keep up with their bills and credit commitments in recent months, compared to 40 percent of all adults and 44 percent of all holders of credit. mortgages.
Meanwhile, one in three private renters have cut back on essential expenses in the last 12 months, compared with one in four adults in Britain, it revealed.
It follows the second reading of the Tenants (Reform) Bill in the House of Lords.
The legislation marks the biggest change to the private rental sector in decades.
However, many questions remain about the changes, including a timeline for the abolition of Section 21 notices, or so-called no-fault evictions.
Government data, published earlier this month, revealed that 2,682 households in England were evicted as a result of Section 21 no-fault evictions between January and March – a 19 per cent increase in a year and the highest number in six years.
Ministry of Justice figures showed a further 7,863 landlords in England launched Section 21 proceedings against their tenants in that period, an increase of 15 per cent in a year.
Half of renters have struggled to keep up with their bills and credit commitments in recent months
Mr Tutton added: ‘Even with the Tenants (Reform) Bill, tenants do not receive any effective legal protection against eviction if they fall into problem debt.
“While it is important that this bill moves forward with a clear timeline for when Section 21 will end, we would like to see changes that would increase security for private renters, with eviction protections that mirror those already in place for mortgagors and social housing tenants.
“In the long term, we need to see a commitment to making housing more affordable and a clearer plan from the Government to reduce the risk of financially vulnerable tenants losing their home due to rent arrears.”
A Section 21 notice allows landlords to legally evict tenants without providing a reason for doing so, creating uncertainty for those renting the property.
However, the prospect of notices being abolished has sparked concern among homeowners who fear they will not be able to take possession of a property when they need to.
Some owners may decide to leave the market and sell if the Section 21 ban is introduced.
Official data shows the latest average rents in Britain from January 2015 to April 2024.
Tutton’s comments come as the Office for National Statistics revealed that the average rent in Britain rose by 8.9 per cent in the 12 months to March this year.
They averaged £1,293 in England, £730 in Wales and £952 in Wales. In Northern Ireland, average rents reached 10.4 per cent in the 12 months to February this year.
However, the growth rate has slowed from a record high of 9.2 percent in the year to March and was the first slowdown in the annual inflation rate since December 2023.
North London estate agent Jeremy Leaf said: “Seeing these issues laid out in black and white is a bit shocking, but not a huge surprise given what we are seeing in our offices.”
Tenants have struggled, especially those looking for new accommodation.
‘Tenants have been struggling, especially those looking for new accommodation.
‘However, that has meant that a larger proportion than usual have renewed existing deals if possible, as many landlords, conscious of prolonged gaps and the importance of keeping good tenants, have opted to keep increases in check .
‘The silver lining is that we are seeing a bit more properties coming in and inflation going in the right direction, which will help stop the acceleration we have seen in rentals, particularly between the middle and end of last year.’
And Harriet Scanlan, of Richmond estate agency Antony Roberts, said: ‘Supply of rental material continues to lag behind demand, ensuring rental prices remain strong and the balance tilts in favour. of the owners.
“Landlords continue to benefit from stable rental income and little or no rental periods, despite a slight increase in properties available to rent, particularly in areas popular with travellers.”
