A think tank has renewed calls for the Government to help people struggling with rising housing costs.
The Resolution Foundation says the share of UK working age households who are behind on or struggling with their housing costs has risen by almost 70% compared to the peak of the pandemic. They increased from 26% in January 2021 to 44% in November 2022.
It says the cost-of-living crisis has left over two-in-five working age households struggling with or falling behind on their housing costs.
Renters are at the sharp end of the crisis, as private and social rents are rising at their fastest rates in a decade, on top of wider cost of living increases.
One-in-12 private renters reported falling behind on housing costs in the three months leading up to November 2022, while over half (53%) reported struggling with their housing costs.
Nearly one-in-five renters in social housing report falling behind while another four-in-10 were struggling.
The foundation says the situation for all households is set to worsen in the months ahead as housing costs continue to rise – with private rental prices expected to continue increasing and interest rate rises pushing up mortgage costs for the 2 million households flowing onto new fixed-rate mortgages next year.
Cara Pacitti, senior economist at the Resolution Foundation, said: ‘With many renters reaching the limits of already depleted finances, this squeeze is having profound impacts on their household budgets and wellbeing.
‘As housing costs are set to continue rising, the situation for renters will worsen without further policy intervention.’