Difficulty accessing socially rented homes mean some families need close to £8,000 extra a year to live decent lives, says Joseph Rowntree Foundation
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It has become much more expensive to afford what the public agrees
is an acceptable minimum standard of living after members of the
public acknowledged the difficulty of accessing more affordable
socially rented homes. For the first time, household budgets
calculated as part of Loughborough University's Minimum Income
Standard (MIS) now include the annual cost of renting privately for
all households. [1] This is instead of living in a social rented
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It has become much more expensive to afford what the public agrees is an acceptable minimum standard of living after members of the public acknowledged the difficulty of accessing more affordable socially rented homes. For the first time, household budgets calculated as part of Loughborough University's Minimum Income Standard (MIS) now include the annual cost of renting privately for all households. [1] This is instead of living in a social rented home and adds nearly £8,000 a year more onto what some households need to meet their minimum needs, compared to previous years. For out-of-work parents, this means benefits only cover around a third of what is needed for an acceptable living standard and their incomes still fall far below this benchmark when working full-time on the National Living Wage. Pensioners with the state pension as their sole income come closer to reaching a minimum living standard, but still fall short. This year marks the first time in the annual study's 18-year history where members of the public in MIS focus groups agreed it's no longer reasonable to assume any of the MIS household types would be able to access a social home if they needed it. Members of the public felt the wait for a home is too long, something JRF research shows stems from the failure of successive governments over the last three decades to build and retain enough social homes. This means all MIS budgets now include the cost of rents in the private rented sector. The Joseph Rowntree Foundation(JRF), who fund the work, suggested that this speaks to a developing theme within the MIS research of the publicquestioning whether theycancount on key functions of the state,includingsocial housing and the NHS. This followsthe introduction in 2024's MIS of a £200 annual budget to pay for health-related services,deemednecessary because of long NHS waiting lists. Social rents are regulated and set against local incomes, however there are minimal restrictions on levels of private rents, so these are much more expensive. [2] The amounts households needto reach a minimum acceptable standard of living have therefore increased:
This hasmeantfamilies'struggle even more to reach a minimum acceptable standard of living, whether through out-of-work benefits or through workingon the National Living Wage (NLW): Lone parents
Coupleswith two children
Pensioners
For families who are out of work or on a low income, the support they can receive to help pay their rent through Universal Credit is restricted by the Local Housing Allowance, which has been frozen since 2024.[3] High rents in the private rented sector are also undoing some of the government's efforts to help families with the cost of living. Theseincludeincreases to the National Living Wage,uprating the basic rate of Universal Credit by more than inflation and expanded childcare support. The government has committed to building more social and affordable homes, as well as introducing tenant protections as part of he Renters Rights Act.However, it will take many years for the new homes currently being built to make a difference, with rents forecast to continue to absorb all average wage growth until at least the end of the decade.[4]This willputcontinued pressure on families already struggling to meet their needs. The JRF argues that the scale of the affordability crisis for private renterswarrantsintroducing rent controls. [5] Darren Baxter, Housing Lead at the Joseph Rowntree Foundation, says: We are no longer living in a world where privately rented homes are a temporary pit stop for young, single professionals. They're now the homes where families are bringing up their children, from babies to teenagers, as well as where people are growing old. But the eye-watering rents that people are paying are denying them the stable foundation they need for a good life. Families can't wait the decades it will take for the new homes currently being built to have an impact on their rents their children will be adults by then. But unaffordable private rents aren't a given. Rent controls would be the solution that would give families security and stability and they should be implemented without delay. Dr Chloe Blackwell at the Centre for Research in Social Policy at Loughborough University, says: While a renewed commitment to improving living standards in the UK, signalled by Prime Minister Andy Burham, is good news for low-income households, tackling the high and rising cost of housing needs to be at the forefront of any plans to reduce the cost of living. Private renting has become the only real option for more and more people in the UK, with many households facing crippling costs just to keep a roof over their heads. If this continues, we can expect to see the gap between incomes and needs widen further, leaving even more households far short of reaching a decent standard of living. Notes to Editors
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