You don’t need Citizens Advice to to tell you it’s a really difficult time to be a private renter. Rents are going up, the quality of properties is going down and more and more people are being evicted without cause.

This month Citizens Advice data highlights the experiences of private tenants struggling to get through the cost-of-living crisis. Here are the top 3 issues we’re seeing and the impacts they’re having on people across the country:

1. Rents are skyrocketing

In England, private rental prices increased by 4.3% in the 12 months to January 2023. This is the biggest increase since the ONS began collecting this data in 2006. This is reflected in our data.

In 2022, more than double the number of people viewed our webpage on ‘how to deal with a rent increase’ compared to 2021 — over 3 and half times more than in 2020.

The data we collect on people who come to us for help with debt suggests that many renters will struggle to manage increased rents. We’ve found that private renters are the group most likely to be in a “negative budget” at the end of every month. This means that they have more money going out than income coming in.

In October to December 2022, the average person we saw in debt in the private rented sector was in a negative budget of -£14. In comparison, on average people in social housing were able to break even and Owner Occupiers were left with a positive budget.

On average, private renters are paying 43% more on rent than people who live in social housing. This means that social housing tenants are slightly better protected from the cost-of-living crisis, despite having lower average incomes than private renters. Private renters are also paying more in rent each month than owner-occupiers are spending on mortgage payments.

2. High rents don’t mean high quality homes

Renters may be paying more than ever for their homes, but the quality of those properties hasn’t improved. In January 2023 we helped a record number of people with disrepair issues in the private rented sector. In particular, we’ve seen a significant increase in the number of people accessing our website for advice on damp in their homes.

The over 3 times increase in page views between October and November is much higher than the spike we would normally see in Winter and is likely to be partially explained by wider awareness of the impact of damp and mould following the tragic death of Awaab Ishak. However, as 45% of private renters cut back on heating to deal with increased energy costs it is likely that more households are dealing with damp and mould this winter.

Our recent report on energy efficiency in the private rented sector (PRS) found that there are currently 2.7 million renting households experiencing damp, mould or cold. Too many homes in the PRS are inefficient and poorly insulated, meaning they cost more to heat. This is making the cost-of-living crisis worse for renters who are struggling to afford to keep their homes damp and mould free.

Damp and mould have a significant impact on private renters’ lives:

• 42% say damp mould and excessive cold has increased their energy bills
• 40% say they have felt stressed as a result of damp mould and excessive cold
• 35% said it made them feel anxious
• 12% said it made them spend less time at home
• 8% said it had made their respiratory illness worse.

3. More renters are being evicted from their homes

Not only are renters faced with high costs and low quality properties, they also have to contend with the fact that their landlord can evict them for no reason at all. Between September and December 2022 accelerated possession orders (a Section 21 eviction which is the first step a landlord has to take to make you leave your home) increased by 148% compared to the previous year.

Our data also shows a significant increase in the number of people coming to us for help with a section 21 eviction notice. This trend began at the start of the pandemic and has continued to build during the cost-of-living crisis. For some renters this can put them at a higher risk of homelessness.

From April 2020 our data shows a significant shift from social tenants seeking advice on homelessness to more private tenants. The pandemic and the cost-of-living crisis have exposed the extent to which private renters are at the mercy of a fluctuating market and the whims of individual landlords.

In response to the pandemic, the government recognised the need for additional protections for tenants in the private rented sector by temporarily banning evictions. But this support hasn’t been offered during the cost-of-living crisis. Our data shows that problems for tenants have only grown as they’re forced to pay more for damp and mouldy homes while still at risk from section 21 evictions.

That’s why we’re calling on the government to:

• Unfreeze Local Housing Allowance to help those struggling most with increased rental costs
• Strengthen Minimum Energy Efficiency Standards in legislation, so all private rented properties reach EPC C by 2025
• Bring forward the renters reform bill to abolish section 21 evictions.

 

Note to editors

This blog was shared by Tilly Cook – Policy Researcher, Citizens Advice – on February 23, 2023.