Three-fifths of private renters unable to afford 'decent standard of living'
An alarming three-fifths of private tenants are unable to afford a decent standard of living amid soaring rent bills, research warns today.
The New Economics Foundation (NEF) analysis claims that 3.1million renters will be unable to afford key essentials by April.
It says those from the poorest households will be £330-a-year worse off with rents rising twice as fast between April 2020-2023 than pre-pandemic levels.
Researchers warn that a 10% increase in private rents over the last three years, 70,000 households will be pushed below the 'Minimum Income Standard'.
The measure sets out what people think is needed in order to live with dignity, according to the Joseph Rowntree Foundation.
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It highlights those on the lowest incomes spend at least 40% of their income on rent payments - three times the proportion of those in Germany or France.
The NEF claims this would prevent homelessness and boost the incomes of 1.8million households by £520 a year on average.
Senior researcher at the NEF, Alex Diner, said: "The cost-of-living crisis means that many families are unable to afford the essentials, like paying rent or covering the mortgage.
"But rapid rent rises over the last two years have meant private renters are being hit particularly hard by spiralling housing costs, with thousands facing the risk of homelessness.”
He added: “As a matter of urgency, the government should unfreeze LHA in next week’s budget so those on the lowest incomes can keep a roof over their heads.
"But ultimately, if we’re going to ensure everyone always has an affordable and safe place to call home, we need to upgrade and repurpose private rented accommodation as homes for social rent to fix our broken housing system.”
The Department for Levelling Up has been contacted for comment.
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