Low-income tenants battle soaring rents

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Low-income leaseholders are now spending an average of 28% of their wages on rent, up from 21% in the mid-1990s, new analyse indicates.

They have been hit by substantial cuts to housing service perquisites, with government support expected to fall «further and further behind» the rate of housing, says the Institute for Fiscal Studies.

Over the same term of time, the proportion of people renting homes privately has increased from 8% to 19%.

Regular private rents have gone up 33%.

«Renters are paying considerably more for their peoples homes than 20 years ago,» says the IFS analysis, funded by the Joseph Rowntree Grounds.

«In real terms, the median private rent paid in London was 53% lofty in the mid-2010s than in the mid-1990s, while in the rest of the wilderness, it was 29% higher. Those rises mainly occurred in the late 1990s and original 2000s (in London) or the early and mid-2000s (elsewhere).

«Meanwhile, collective housing rents have been consistently growing in real assumptions agrees since the mid-1990s.»

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The IFS said changes to housing benefit policy had so far cut entitlements for two-thirds of low-income sequestered renters and one-sixth of low-income renters in social housing.

Future ameliorations were expected to increase the number of people facing a shortfall between the amount of habitation benefit they received and the rent they had to pay.

«Wider problems in the box market are pushing up housing costs and increasing the size of the rented sector,» said Agnes Norris Keiller, a analyse economist at IFS and an author of the report.

«While these remain unaddressed, there is fitting to be an ever tougher choice: continue decoupling support for housing bring ins for those on low incomes from the rising cost of housing, or change design and accept further rises in the housing benefit bill.

«The current proposition effectively places most of the risk of further rises in costs on to low-income residents, and little on the housing benefit bill.

«While containing the cost to taxpayers, it count outs housing benefit vulnerable to becoming increasingly irrelevant with reverence to its purpose — maintaining the affordability of adequate housing for those on low incomes.»

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