Nearly 2,900,000 people are one paycheck away from being homeless
More than 43% of working renters across the UK are only one paycheck away from losing their homes, new figures show.
Data obtained by the housing charity Shelter from its latest YouGov polling shows this equates to 2.9 million people.
For 1.7 million (26%) of private renters, they would immediately be unable to pay rent from their savings if they lost their job.
Emma Harris, 49, who lives in Birmingham, was made redundant as a software developer in August 2024 and is now in rent arrears of more than £2,000.
She lives in a three-bedroom house and receives Universal Credit but she’s only entitled to a lower housing rate because she is single, so the Universal Credit doesn’t cover all her rent.
Emma pays £995 a month, excluding bills, but only receives £600 in Universal Credit.
‘It is a continuous struggle. It is very depressing trying to balance whether I eat or pay bills,’ she told Metro.
‘Since being made redundant, I’ve been paying my bills late including the phone and internet bill.
‘I’ve had to reduce the amount of rent I pay because I’ve got to eat.’
Figures from the Office for National Statistics (ONS) show that the average rent across the UK increased by 9.1% to £1,362 for the 12 months ending in November 2024.
This is reflected through Shelter’s own stats that show 56% of private renters had their rent increased in the last year – putting immense strain on people’s finances.
Of these, one in three have had their rent increased by more than £100.
This is an issue experienced by Emma, who says her rent was increased, which on top of losing her job, has impacted her lifestyle.
She said: ‘I used to have certain hobbies like woodturning but I had to abandon that.
‘I meet up with friends very rarely now so I experience isolation and always have to decide whether paying for petrol and driving is cheaper or using public transport.
‘I cancel hair appointments and other nice activities because I’ve got to eat.
‘I support what the Labour government are doing in terms of building 1.5 million homes but this housing must be affordable for those of the living wage or on Universal Credit.’
Meanwhile, Emma is actively looking for a new job and also considering retraining as a HGV driver and says she will hear back from a recent positive job interview tomorrow.
What is the Renters Rights Bill?
The new Labour government has introduced a Renters Rights Bill to transform private renting.
This follows record levels of evictions, rising rent rates and demands to pay several months rent in advance at the start of contracts.
Most significantly, it will scrap the section 21 ‘no fault’ evictions and introduce more fairness to the system.
Shelter’s campaign to fix renting
Shelter has launched a campaign to fix the renting crisis across the UK.
This is to demand protections against unfair evictions and measures to stop rent hikes – which will help to make sure renting is a stable, more secure option.
The charity believes this will then ease the pressure on social housing waiting lists and reduce homelessness.
Over the last year, 26,150 households were threatened with homelessness after being served a section 21 ‘no fault’ eviction, according to Shelter.
People can join the campaign here.
As of October 2024, the bill is currently at the ‘committee stage’ of reading – where a cross party group of 17 MPs read through the legislation line by line, and debate any changes which could be made ahead of the next phase – ‘report stage’.
Shelter is calling for the government to commit investment in the Spring Spending Review to build the 90,000 social rent homes a year for ten years needed to give everyone a genuinely affordable secure home.
How is the government supporting working renters?
In response, a spokesperson for the Ministry of Housing, Communities and Local Government, told Metro: ‘Our Renters’ Rights Bill will deliver on our promise to transform the private rented sector, so that people can put down roots and save for the future without fear of being evicted on a whim – including plans to end ‘no fault’ evictions for all existing and new tenants.
‘Through our Plan for Change, we will tackle the wider housing crisis we inherited head on, building the homes we need, delivering the biggest boost in social and affordable housing in a generation.’
What has Shelter said in response?
Polly Neate, chief executive of Shelter, told Metro that crippling rents are leaving renters unable to save money.
She said: ‘Decades of failure to build social homes has forced millions into private renting, leaving renters paying out eyewatering sums for often shoddy rentals.
‘For so many, the worry of being slapped with an unaffordable rent increase that would force them out of their homes and into homelessness looms large.
‘The only genuinely affordable alternative to private renting is social homes with rents tied to local incomes.
‘Until the government delivers the 90,000 social homes a year needed to end the housing emergency, Shelter will continue to be there for people who are at risk of homelessness to provide vital support and advice.’
Get in touch with our news team by emailing us at [email protected].
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