Tenants in work struggling with ‘unaffordable’ rent

Nearly half (45%) of private renters live in unaffordable housing - and many of these people are in work.

According to the Institute for Public Policy Research (IPPR), three-quarters of working age renters who are struggling with rent have a job.

This, it says, shows that affordability pressures aren’t just confined to those on the lowest incomes.

“Millions of renters are being pushed to the brink by a housing market that simply isn’t working for them,” said Dr Maya Singer Hobbs, senior research fellow at the IPPR.

“This is no longer a marginal issue affecting a small group.

“It is a mainstream cost-of-living crisis hitting working households across the country.”

Why are rents soaring?

The IPPR says landlords who are themselves facing higher costs are passing these on to renters.

However, the thinktank is warning that tenants often have “little ability to absorb or avoid sudden rent increases”.

As a result, it’s urging the government to take steps to stabilise rent, such as limiting annual rent increases by either inflation or wage growth - whichever is lower.

Could rent controls be the answer?

Ministers have so far ruled out the idea of introducing rent controls.

But rumours are swirling that the government might change course because of the economic impact of the US-Israel war with Iran.

In fact, the Guardian recently reported that chancellor Rachel Reeves is considering imposing a one-year rent freeze on private sector homes.

IPPR figures show that 2.4m households are currently struggling to keep up with rent.

But the thinktank believes that if action isn’t taken, this number will rise to 2.5m by the end of the current parliament.

“The current system leaves renters exposed to global shocks and rising costs they have no power to control,” Dr Singer Hobbs commented.

Although she acknowledged that the government has taken “important steps” to strengthen renters’ rights, she said it now needs to go further.

“A fair system of rent caps would rebalance the market, protect households from sharp increases, and ensure that rents grow in line with what people can actually afford,” she added.

What help is available for renters?

If you’re finding rent hard to afford, then you might be entitled to some support:

Universal credit

If you’re of working age, universal credit (UC) may include extra money to help with rent and service charges. 

This housing element is usually included in your monthly UC payment and paid directly to your landlord.

You can also apply for additional support from your UC if you're dealing with financial hardship.

Housing benefit

If you’re over state pension age, you might qualify for housing benefit through your local council. 

Some people under pension age may also be eligible, particularly if they live in supported or temporary housing.

The amount you receive depends on:

• your age
• where you live
• the size of your household

Crisis and resilience fund

Under the Crisis and Resilience Fund (CRF), councils in England will get multi-year funding so they can provide targeted help to people who need it most.

The CRF aims to:

• provide a safety net for households hit by unexpected financial shocks
• help people become more financially resilient in the longer term
• prevent recurring hardship, so people are less likely to repeatedly need emergency help like food parcels

Charity grants

Organisations like Turn2us can help you find and apply for grants and other financial support from charities and local community groups.

Create a household budget

Look at your income and outgoings, so you can be sure you’ve got money available for essential expenses.

We've put together a guide on how to create a budget to help you get started - and you can also try our free budget planner.

Find out what benefits you can claim 

If you’re struggling with your day-to-day costs, you might be entitled to financial support.

Use our benefits calculator to see what help you could be eligible to claim.

It might be more than you think.

Check our money saving tips

We’re regularly updating these pages with handy advice on how you can save money, such as: 

• how to make your money go further
• how to save energy
• how to keep the cost of your food shop down
• 50 ways to cut your fuel costs

And check back here for our round-ups of standout deals and low-cost recipes that can help you cut costs in the supermarket.