While inflation may have dropped to the lowest rate since September 2021 at 2.3%, near-record annual private rent growth of 8.9% shows the cost of living crisis is continuing for millions of renters.

On average, renters in Britain are now having to find £103 more a month than they were last year. The average renter now spends a third of their income on housing costs, compared to those with mortgages – who spend 10% on average.

And with only 30% of employers preparing to give above inflation pay rises in 2024, many private renters are continuing to experience financial insecurity, leaving them with little breathing room to pay their increased rental costs - which are already outpacing wage increases.

Insecure work, rising private rents and financial precarity

Last month we released our briefing – Double Jeopardy: Insecurity at work and at home – which explored how the insecurity felt at home by renters can be compounded by insecurity at work.

We found that 1.4 million people in severely insecure work live in the private rental sector, while one in four (24.4%) private renters are in severely insecure work – much higher than secure workers. Black and Asian workers and millennial workers are most likely to be impacted by this double jeopardy. Work Foundation analysis shows this is particularly financially challenging for severely insecure workers, who are on average £3.2k per year worse off than those in secure jobs.

Speaking at a Work Foundation event on insecure work and private rent, Lisa Doyle – Head of Policy and Research, Trussell Trust – said that “paid work is not providing a reliable route out of hardship”. She stated that research shows that one in five people referred to food banks in the Trussell trust network are in working households.

For workers in insecure work, these record rent rises make it even harder to make ends meet. Lisa suggested the double jeopardy of insecure work and private rent means that adverse work events such as reduction in hours, having a pay cut or having to take unpaid sick leave raises the risk of food insecurity.

Failure of Renters (Reform) Bill to pass leaves insecure workers in continued double jeopardy

Following the announcement of a General Election on 4 July 2024, the Renters (Reform) Bill – which aimed to “create a fairer rental market for tenants and landlords” – did not pass before Parliament dissolved. This means renters will continue to contend with a lack of security of tenure.

Ben Twomey – Chief Executive of the campaign group, Generation Rent – suggests that the current private rented sector is “just not doing the job of giving people that fundamental need to have a home.” Speaking at a Work Foundation event last week, he called for the next Government to stop landlords being able to kick out tenants out of their home at short notice when they’ve done nothing wrong.

Despite a longstanding Government pledge to impose a ban, the use of Section 21 no-fault eviction notices are at a seven-year high – enabling tenants to be evicted with just two months’ notice. To provide security for renters, Ben calls for these ‘no fault’ evictions in England to end and suggests there needs to be a limit on how landlords raise rents. He says there needs to be a cap because rents are “going through the roof” and outpacing wages – and what workers can afford.

The challenges for the next Government

Soaring private rents are shining a light on those in private rent and insecure work are facing. With a General Election little more than a month away, the need to reform both employment and housing sectors is likely be a vital for many workers still facing a cost of living crisis.

To protect renters in future, the next Government must reform the private rental market to make it fairer for renters and to bring forward a comprehensive Employment Bill to substantially reduce insecure work in the UK and support those in severely insecure work to better manage the risks of living in the private rented sector.

For more information please see: Double Jeopardy: Insecurity at work and at home

Related Blogs

• 

  Frosty Days, Festive Ways!

• 

  Taking student issues to Parliament

• 

  The financial career landscape

Disclaimer

The opinions expressed by our bloggers and those providing comments are personal, and may not necessarily reflect the opinions of Lancaster University. Responsibility for the accuracy of any of the information contained within blog posts belongs to the blogger.