JRF urges housing minister to invest in social housing

New analysis from the Joseph Rowntree Foundation (JRF) highlights that almost one million families on low incomes in England are paying rents they cannot afford in the private sector.

The JRF analysis finds current government policies to support homeownership and make renting more affordable are failing this group, but highlights that investment in homes for social rent could lift 600,000 people out of poverty.

The briefing examined families who are paying private rents they cannot afford, either because they are on low incomes and spend over 30% of their income on rent, or because they have incomes so low most will find it difficult to cover the rest of their rent after housing benefits.

Nine in ten of these families are living in poverty, according to the report, with some family budgets more than £100 a week below the poverty line.

Almost half of these families are with children, meaning that 30% of all families with children in the private rented sector are paying rents they cannot afford.

The JRF also found that employment is not a solution to the issue, with 4 in 5 of these families having at least one adult in work and two thirds of them working full time.

Rachelle Earwaker, economist at JRF, said: ‘It’s unacceptable that almost a million families on low incomes across England are paying private rents they can’t afford. This has huge consequences for families: money that could be spent on nutritious food, after-school activities or saving towards a deposit for your own home is instead sucked into high private rents.

‘Our analysis shows that buying your own home through government schemes is simply not an option for the vast majority of people on low incomes, and policies to make rent more affordable are not working either. The impact of the housing crisis is being felt up and down the country: so why is there a policy black hole for the people who most need support? 

‘With an ambitious new Minister at the helm, the Comprehensive Spending Review is the first opportunity for him to signal a clear intent to tackle the housing crisis head on by delivering the homes that can fix the problem. Bold investment in homes for social rent that are genuinely affordable for people on low incomes would set us on a clear path to reducing poverty and increasing the living standards of people on the lowest incomes.’

Photo by Nick Fewings