The results of research into the number of people living in rented property and the value of rents are always interesting to view and it appears that the trend of there being an increased number of people in private rented accommodation continues.
It is of particular note that this IFS study found rent increased by a third over the 20 year period considered. Many households have been affected by the rent increase and the cuts to housing benefit during this time.
The research found that in the private sector, low-income working-age renters with children have been particularly badly affected by these trends. Around 600,000 people in the private rented sector – 500,000 of whom are living in families with children - will face shortfalls between their housing benefit and their rent. The result of this will be that if tenants fall into substantial rent arrears, landlords may respond by seeking possession of their properties.
Households on low incomes are being left particularly exposed to rent increases as housing costs eat up a growing proportion of their money, a thinktank has said. Analysis by the Institute for Fiscal Studies (IFS) found that “substantial” cuts to housing benefit in recent years had led to rental payments now using up an average of 28% of the non-housing benefit income of low-income private renters – up from 21% in the mid-1990s.