One in three tenants borrowed money to pay rent in last month

Exclusive: Hard-up private renters turning to credit card debt, overdrafts, friends and family to meet costs

Renting costs are increasing (PA)

One in three private renters have been forced to borrow money to pay their rent in the space of a month, shocking new figures show.

Over two million people have turned to credit cards, overdrafts, family members or even payday loans to meet landlords’ demands.

The finding comes as housing charities warn that private tenants are facing “a crisis like never before”.

The Independent revealed last month that renters are now paying four times as much of their incomes as homeowners on housing as the situation worsens.

And another investigation discovered that the majority of local councils had failed to build a single home in the past five years despite 1.2 million people on waiting lists.

Now a regular survey of renters by charity Shelter, shared with The Independent, reveals that a full 33 per cent of people had to borrow money to meet rent in the past month when surveyed in June. The figure is the highest since before the pandemic, the charity says.

Fifteen per cent of renters in England used credit cards or overdrafts while 8 per cent had turned to family or friends to lend them money.

Shelter's survey also found that half of working renters are only one pay cheque away from losing their home, with 34 per cent unable to pay their housing costs from savings were they to lose their job.

This figure has risen by almost a third in the past two years as the cost of living crisis bites, the charity says.

“Private renters up and down the country are facing a crisis like never before. Decades of failure from government to build enough social housing means that the pressure on oversubscribed private renting is worse than ever,” said Polly Neate, chief executive of Shelter.

“The severe lack of social homes means swathes of people are barely scraping by as they’re forced to compete for grossly expensive private rentals, because there is nothing else. With food and household bills continuing to surge, the situation is precarious for thousands of renters who are one paycheque away from losing their home, and the spectre of homelessness.

“The time for piecemeal policies is over. To jam the brakes on the housing emergency we need a genuinely affordable alternative to private renting. We know social housing works for most people because it’s secure and the rents are tied to local incomes. Instead of empty words, the government and every political party must sign up to building thousands more social homes.”

In July the Office for National Statistics said rents were increasing at their fastest pace since records began, with a 5.1 per cent jump on average in the 12 months to June 2023.

The government pledged under prime minister Theresa May to improve conditions for renters by banning no-fault evictions – but years later the legislation, the Renters (Reform) Bill, is still making slow progress through parliament.

Ministers have since scaled back their housing targets for local authorities and ditched proposals for planning reform aimed at getting more homes built. They have also ruled out introducing any controls on how fast rents can rise, as are common in other European countries.

One 50-year-old renter, named Priscilla, who was issued with a no-fault eviction notice in May, said: “I look for new properties every single day. Before I fall asleep, I will have a look for properties just in case there’s something, and I wake up early at 4 or 5 in the morning and look again and send enquiries. I’ve applied for over 20 properties so far.

“I am stressed, anxious and depressed. I can’t sleep and I can’t concentrate at work. I am already making financial sacrifices; I don’t go out and I won’t be having holidays anymore. I’ve been in several situations where other renters have offered more than the rent advertised. At a recent viewing the estate agent said two people before me had already offered a year’s rent in advance.”

YouGov conducted the representative survey of 2,003 private renters in England between 8 June and 30 June 2023, with results weighted to be representative.

A Government spokesperson said: “We have a strong track record of delivering affordable homes to rent and buy across the country. Since 2010, we have delivered over 659,500 new affordable homes through our £11.5 billion Affordable Homes Programme, including 166,300 homes for social rent.

“Our landmark Renters (Reform) Bill will also deliver a better deal for renters, giving tenants greater security in their homes and preventing large rent increases being used as a backdoor method of eviction.”