Average private rents in the UK have surged by a significant 8.9% in the year leading up to April 2024, as reported by the Office for National Statistics (ONS). This steep rise in rental costs has prompted StepChange Debt Charity to raise concerns about the increasing anxiety among private renters, noting that the current Renters (Reform) Bill, under consideration in the House of Lords, fails to tackle the critical issue of affordability.

Simultaneously, fresh polling data from StepChange, gathered by YouGov, paints a troubling picture: 31% of private renters resorted to credit to cover their rent in the past year, a noticeable increase from 28% in January 2024.

The financial strain extends beyond just rent. Half of private renters are grappling with bills and credit commitments, a stark contrast to 40% of all UK adults and 44% of mortgage holders. Moreover, 33% of private renters have cut back on essential spending over the past year, compared to 26% of the general UK adult population.

In light of these findings, StepChange is advocating for the Renters (Reform) Bill to incorporate provisions that assist private rented sector tenants in maintaining their homes during financial hardships, in addition to abolishing Section 21 'no fault' evictions.

Peter Tutton, head of policy, public affairs, and research at StepChange, articulated the crisis succinctly: “We’ve reached a point where renting in the PRS is increasingly unaffordable, yet the growing scarcity of social housing means that more and more financially or otherwise vulnerable people have no choice but to do so.

"Sky-high rents and wider cost of living pressures mean millions of private renters are scraping by or relying on credit to pay their rent. Even with the Renters (Reform) Bill currently in the Lords, PRS tenants are given no effective statutory protection from eviction if they do fall into problem debt.

"While it’s important that this Bill is progressed with a clear timeline of when Section 21 will end, we’d like to see changes that would increase security for private renters, with protections from eviction that mirror those which already exist for mortgagors and social housing tenants. In the long term, we need to see a commitment to making housing more affordable and a clearer plan from government to reduce the risk of financially vulnerable PRS tenants losing their home because of rent arrears.”

This critical situation underscores the urgent need for legislative changes to provide better security and affordability for private renters, who are increasingly caught in a precarious financial position.