The charity believes the rising cost of private housing will push people out of social housing, raise the cost of housing benefit and cause 2.5 million people to live in poverty.
According to the report, by 2040 people who live in rented accommodation will be twice as likely to live in poverty than those who own a property.
The foundation believes private rent will increase 90%, which equates to double the speed income is increasing, causing people to live below the breadline.
chief executive, Julia Unwin said:
“These stark findings are a wake-up call for political leaders. After decades of failing to build enough, those in power have a responsibility to act now to build more genuinely affordable homes.”
The report predicts the average rent in the UK, for social housing, to reach £92 per week, a 39% increase from the current average. This rise could push the cost of housing benefit up by £20bn, a 125% rise from the current housing bill.
The housing charity have called on the government to do more to build social housing in a bid to keep private rent prices down.
Private Rent Debt: How To Deal with It
Paying rent is a priority expenditure and as such this should be one of the first bills paid each month, however, people with financial problems can easily find the debt spiralling.
There are steps anyone with rent arrears can take to avoid it becoming any worse or for the debt to rise beyond a point which it can be resolved without an eviction taking place.
- Speak to Landlord: Its important anyone struggling to pay their rent on time contacts their landlord. This could allow the tenant to come to an arrangement before the debt occurs and avoids any charges. The landlord may offer a payment break or reduced payments for a period of time.
- Seek Debt Advice: If speaking to the landlord hasn’t had the desired result the next step is to seek charitable debt advice. Although it may be difficult to include rent arrears into a debt solution, depending on whether someone is living in the property, there may be a solution which could help.
- Complete Benefit Checker: A large portion of the population aren’t receiving the benefits they are entitled to, a simple online checker will tell people if they are entitled to extra benefits.
If you are struggling to pay your rent or if you have rent arrears and require debt advice, please call Debt Support Trust on 0800 085 0226.