Three million working families in England are just one pay cheque away from not being able to pay their rent or mortgage, warns a new report from housing charity Shelter.
Shelter and market research firm YouGov conducted a survey on 8,381 adults in the UK, and found that only 37% would be able to cover their housing costs for more than a month if they or their partner lost their job.
They reached the three million figure using data from the 2011 Census, published by the Office for National Statistics, which found that there were 8,424,182 working families in England.
The Chief Executive of Shelter, Campbell Robb, says: “These figures are a stark reminder that sky-high housing costs are leaving millions of working families stretched to breaking point and barely scraping by from one pay cheque to the next.”
The charity also highlighted the Government’s family resources survey from 2014/15, which shows that 16.5m (43%) working age adults do not have savings.
The Shelter/YouGov report also found that 23% of working families in England would be unable to pay their housing costs at all if they or their partner lost their job.
Additionally, almost half (48%) of working families said that housing places the greatest financial strain on their finances.
Robb adds: “In these uncertain times, the new Government has a real chance to show working families they’re on their side, by protecting and improving our welfare safety net.
“It’s vital that if life does take a turn for the worse, there’s enough support available for families so that they don’t go hurtling towards homelessness.”
The research is a reminder to landlords that tenants can face financial difficulty at any time. As such, it is vital that all landlords protect their rental income with Rent Guarantee Insurance.
The Just Landlords policy provides the ultimate peace of mind cover for landlords, ensuring that you still get paid if your tenants fall into rent arrears.
Our guide will help you understand exactly why Rent Guarantee Insurance is so important for your lettings business: https://www.justlandlords.co.uk/news/landlords-guide-rent-guarantee-insurance/
Don’t be out of pocket if your tenants cannot afford the rent!