More than 500,000 face ‘couch browsing’ as housing disaster squeezes rental market

Soaring rates of interest have targeted consideration on the 4.2 million households whose mortgage repayments have risen, alongside the
3.3 million but to face the ache.

But there are tens of millions enduring one other property plight – hovering rents and rising competitors for fewer rented houses in the marketplace.

There are stories of lengthy queues exterior letting brokers when new houses are rented out.

Bidding wars have seen individuals supply greater than the marketed lease.

And renters are being requested for pictures and a university-style “personal statement” to impress potential landlords.

Richard Lane, director of debt charity StepChange, stated: “The pressure on tenants in the private rented sector has been building steadily since before the pandemic to a now unsustainable level, especially in the largest cities where rents are rising above 10 percent.

“Our recent polling found that private renters are almost twice as likely to be in problem debt compared with the general population, while half of private renters have seen their rent increase in the last 12 months.

“With mortgage rates reaching their highest level in 15 years, rents are only increasing further as landlords seek to pass on debt-servicing costs, at a time when households are struggling with the cost of living.

“We welcomed the end to ‘no fault’ evictions of private tenants proposed in the Renters (Reform) Bill. But with rents rising and
cost-of-living pressures biting, we urgently need to see effective support and protections for the most financially vulnerable private tenants, who can easily face mandatory eviction if they fall into a relatively small amount of rent arrears.”

Since April 2020 rents have risen by virtually 10 % and additional rises are anticipated as landlords cowl mortgage prices.

Interest charges have risen to 5 % to curb inflation, which was caught at 8.7 % in May.

The Office for National Statistics says 43 % of renters reported it was “very” or “somewhat” troublesome to afford lease, in contrast with 28 % of mortgage holders.

The ONS stated renters spend much less on necessities and usually tend to run out of meals and fall behind with vitality payments.

The variety of renters in England has doubled to greater than 11 million because the late Eighties. Mean-while, landlords are promoting up attributable to rising prices, more durable rules and laws within the new Bill.

Sixteen % of properties on the market in June have been beforehand rented, up from 13 % in January 2019, discovered Rightmove.

Local authorities are not constructing houses with protected rents and social housing suppliers are fighting lengthy ready lists.

Planning purposes have fallen to file lows and housebuilding in England is ready to succeed in its lowest since wartime, squeezing provide.

Many persons are pressured to stay in poor-quality housing or find yourself homeless. Around 600,000 privately rented houses – one in eight – have points reminiscent of damp and mildew.

More than 100,000 households in England, together with 125,000 youngsters, stay in non permanent lodging – a 20-year excessive.

And renting privately is not a stepping stone to saving for a deposit. Finding a property is now so arduous specialists predict a rise of 580,000 “sofa surfers” and hid households by 2030 – a bounce of 29 %. These are individuals who could be homeless if not staying with associates or relations.

In 2018-19, two % of households – 541,000 – had somebody on this class staying within the final 12 months, stated housing consultancy Lichfields.

Sofa browsing is extra prevalent in London and the South-East.

Just below three in 10 of those that had couch surfers dwelling with them had dependent youngsters.

In addition, there have been 1.6 million households with an grownup who would favor to purchase or lease on their very own however can’t afford
it. This means two million adults reside in these “concealed households”.

As many as 88 % of those are below 35 with 82 % in full- or part-time work

Experts say social housing once more must turn into the second-largest type of tenure, and urged a Renters’ Charter to make renting fairer, safer and extra reasonably priced.

And pensioners are additionally struggling, with the variety of older individuals renting privately rising 56 % within the final decade to 403,000.

Morgan Vine, of the charity Independent Age, stated: “Of these renters in later life, a quarter are in long-term poverty.

“Many more are concerned about the stability of their housing situation, with landlords currently able to evict tenants with little warning and through no fault of their own.

“Many tenants therefore feel too scared to ask their landlord to make repairs. Older renters who claim pension credit or housing benefit are frequently turned away by letting agents.

“What older renters need is safe, secure and suitable housing.

“The Government should also unfreeze housing benefit, which has been stuck at 2019 levels and doesn’t cover local rents in most of the country.”

“This situation makes private rents unaffordable, particularly for those living on only the state pension and benefits.”