Laura Sharman 24 March 2014

‘Legacy of recession’ increasing housing debt, says charity

The number of people seeking help from Citizens Advice over social housing rent arrears increased by 10% last year.

The charity is warning the ‘legacy of recession’ has left an increasing number of people struggling to pay their rent, with 87,000 people reporting social housing debt in 2013.

The figures also show 26% more people were at risk of having their home taken from them due to debt, with 39,827 people falling into rental debt with a council or housing association.

Citizens Advice chief executive, Gillian Guy, said: ‘The shock of recession is fading but the effects of the downturn are still with us. Increasing numbers of people are on the edge of losing their home. Many people are struggling to manage their housing debts and prevent a stressful situation becoming an outright crisis.

‘The steep rise in arrears, possession orders and help with housing debt suggests thousands cannot make ends meet and need help to keep a roof over their head. An urgent commitment to sorting out our woefully inadequate stock of affordable housing would help the supply of homes start to catch up with demand.’

The charity also said welfare reforms were impacting on people’s finance, with 20% of those affected by the bedroom tax falling behind with their rent.

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