More than a third of renters can’t afford rents – TDS

Rising rents and stagnant benefits are creating a financial squeeze for private renters in the UK, with a study revealing more than a third (35%) are struggling to afford their rent.

The research by the TDS Charitable Foundation surveyed more than 2,000 tenants and found a big rise in financial strain compared to last year.

It also warns politicians that simply ending Section 21 ‘no fault’ evictions will not solve the affordability problem.

The findings reveal the proportion of tenants facing difficulties affording rent has risen from 32% in 2023 to 35% in 2024.

Also, the situation is worse for those who are not in work due to long-term sickness or disability – with 56% saying they are struggling.

Students (45%) and those on benefits (43%) also face significant challenges, TDS says.

Landlords with tenants in arrears

The head of policy and research at TDS Group, Dr Jennifer Harris, said: “Being able to afford a home should be the foundation for anyone to flourish.

“However, our data paints a worrying picture of the pressures many renters are now under and has implications for landlords with tenants in arrears.

“Whilst all the main parties have focused on ending section 21, this will not address the fundamental challenges many tenants face in affording their rents.”

She adds: “The next Government needs to avoid the temptation to reach for simple solutions.

“This means addressing the gap between supply and demand in the rental market, reducing costs on the sector and providing certainty about housing benefit levels to enable tenants and landlords to plan for the medium to long term.”

Rents in small towns have risen

While the average rent increase was 7% over the last year, the TDS data highlights a geographical disparity as rents in small towns have risen the most – by 11%.

However, in suburban areas rents have seen a small decrease (-0.3%).

The survey also reveals that rising rents is forcing many tenants to cut back on essentials.

TDS says that 55% of all renters have had to reduce spending on food, heating and clothing.

This figure jumps to 72% for single parent renters and 62% for households with children.

Banning Section 21 won’t work to resolve affordability

TDS says that banning Section 21 won’t work to resolve affordability and it is urging the next government to focus on long-term solutions, including:

• Increasing supply of rental properties to meet demand and reduce rent pressure
• Implement measures to reduce costs within the rental sector
• Committing to keeping housing benefit rates in line with inflation to ensure renters can afford their homes.

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