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Shelter says renters hardest hit of all by cost of living crisis

Campaigning charity Shelter claims renters’ pockets are being hit the hardest of any demographic group in Britain in terms of the cost of living crisis. 

The Office for National Statistics says some 83 per cent of adults reported a rise in their cost of living last month - March - compared with 62 per cent in November 2021.

And the same ONS study found that in early 2022, 29 per cent of adults have reported that their household could not afford an unexpected, but necessary, expense of £850.

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Additionally 53 per cent of adults who rent their home reported that they could not afford an unexpected expense compared with 13 per cent of adults who own their property outright.

In response Shelter chief executive Polly Neate says: [The] ONS figures show that the cost-of-living crisis is piling on pressure across the country, and it’s renters’ pockets that are being hit the hardest. 

“Our frontline services are already hearing from people who having to choose between putting food on the table, keeping the lights on, and paying their rent. 

 

“With bills skyrocketing and rents higher than ever, far too many will struggle to keep a roof over the head as this crisis deepens in the coming months. 

"If we’re going to prevent rising homelessness this year, the government must help renters weather the storm by making housing benefit fit for purpose. Long term, to insulate more people against cost-of-living shocks, we need investment in social homes with affordable rents pegged to local incomes.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

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    They're right that housing benefit needs to be made fit for purpose.
    A quick look at Rightmove shows there are currently about 6 properties available within LHA rent limits in this entire 500 square mile rent area. That's 2 one bedroom properties, 3 two bedroom and 1 three bedroom.
    Two of them have E rated EPCs, one is only available to someone who has worked for the same employer for more than 3 years. Only one is in the main city in the area. The others would all involve a costly commute to where most jobs are.
    LHA was supposed to cover the cheapest 30% of each size rental property. In this area it used to be the choice was either rent at LHA level 20+ miles from the main city or pay more rent and live closer to work. Now it seems to be pay more than LHA wherever you choose in the entire 500 square mile area.
    I'm not opposed to renting to people with a UC top up. Several of my tenants work in low paid jobs and receive UC. They all pay the rent themselves. My experience of direct payment from UC was stressful to say the least. Why are DWP incapable of paying as per the tenancy agreement? One month in advance on the date stated on the tenancy agreement. The idea of them paying in arrears, if they haven't sanctioned the claimant or stuffed up the claim, on a random date of their choosing is ridiculous. Giving us no way of contacting them is also ridiculous. If the idea of giving the rent element of UC to the claimant is to give them some half baked idea of dignity at least make sure the system works in real time not some fantasy land. Personally I think ensuring people can keep a roof over their heads would give them far more dignity than anything else.

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    With LHA well below market rents how can we even consider taking tenants on benefits

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    Polly's six figure salary would allow her to buy a low cost home every year to house a homeless family at whatever low rent she chooses. Setting such an example might push John McDonnell to give up his second and third home and the Noble Baroness Alicia Kennedy to contribute similarly?

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    I am not sure Renter’s are the hardest hit, everyone is hit hard. I think the young buyers with Mortgage’s are the hardest hit and have a great deal to loose. What have renters got to loose (nothing), its not their property and the law completely on their side.

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    Michael has a very good point. While LHA is woefully inadequate it's considerably more generous than the amount homeowners can claim.
    If a tenant is struggling to make ends meet they can apply for discretionary housing benefit in addition to the normal LHA. Alternatively they can downsize into a cheaper property or a more energy efficient one or one closer to work (assuming they can find one) and the costs to move are relatively small.
    There isn't really any assistance for struggling homeowners other than maybe foodbanks. If a homeowner needs to move they have to pay thousands of pounds in estate agent fees, solicitor fees, SDLT and possibly early repayment mortgage penalties. Selling takes months and there's always the risk the chain will collapse and the mortgage offer expire.

    If things get so bad eviction is on the cards a tenant seems to have far more time before the bailiffs are appointed. Mortgage lenders appear to have a more effective eviction process.

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    I wonder how much poverty is due to poor money management and priority choices. I knew someone living on benefits who had a cheap car, then when they needed money they sold the car. Shortly after they needed a car so took out long term hire at £120 per week! They would have takeaways 3 times a week, then go to food banks. As soon as they had any money, they spent it.

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    Shelter exploit the fact that nobody does proper fact checks anymore. They give no evidence at all to say how renters are being hit harder than anyone else. Whether you pay rent or a mortgage, all the other costs you incur (fuel, food, energy bills) are the same.

    Yes renters will be suffering from cost of living increases, but so will everybody else.

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    Those who live on junk food and take aways pay more for food than those who buy healthy raw meat and vegetables in season and cook their own food.

    It's not difficult to do the latter but many are too stupid, feckless and lazy to do so. Perhaps we should allow natural selection to take its course and benefit from survival of the fittest?

     
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    • L C
    • 02 April 2022 13:24 PM

    Shelter just like the glorified headlines. Everyone is affected.

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