More than four in five low-income North East families in "unaffordable" rented accommodation are struggling to afford food, heating, toiletries, and other essentials. According to research from the Joseph Rowntree Foundation (JRF), 82% of low-income households living in the region’s private rented sector are being forced to go without such basic items. That is the highest rate of any region in the UK.
Call for rent controls
The anti-poverty charity is calling on new prime minister Andy Burnham to deliver reforms to cut the cost of living. The JRF estimates that 7.4 million low-income families across the UK have been unable to afford essential items in the last six months, the highest number since it began monitoring the cost of living crisis in 2021.
After a report revealed last week that 43,000 North East households are either homeless or living in overcrowded or otherwise unsuitable accommodation, the charity shared new data on the difficulties faced by renters. It warned that many private renters in the North East have little financial resilience, with just under half (47%) reporting having no savings at all, while just under one in five reported finding it difficult to pay their rent bills.
Regional disparities
The 82% of low-income renting households going without essential items compares to a national average of 77% and is notably higher than the neighbouring regions of the North West (75%) and Yorkshire and the Humber (72%). The JRF has called on the Government to introduce new rent control measures to cap the level of increases landlords can impose in line with the lower of inflation or earnings growth, estimating that it could save the average renter in the North East £270 a year.
Darren Baxter, principal policy adviser at the JRF, said: "The rate at which private rents are increasing might be slowing down, but rents still take up too great a share of renters’ incomes. Unaffordable rents leave families in the North East without enough money to afford the essentials, like food, heating and basic toiletries.
"The Renters Rights Act gives renters more stability by abolishing no-fault evictions. We need to take the next step and introduce rent controls to making renting more affordable and therefore secure."
"Unaffordable private rents aren’t a given. No one should have to choose between paying their rent and paying for food. Done right rent controls are feasible and should merit serious consideration from anyone concerned about the cost of living."
Housing challenges
Analysis carried out by Iceni Projects described affordability as the "defining challenge" of the North East’s private rented sector, warning that rents are "rising faster than incomes and younger households [are] facing the greatest financial pressure". Their review, carried out for the North East mayor’s office, found that the average length of rental tenancies in the region has jumped from 3.5 to 4.7 years since 2014 – with 42% of renters not expecting to be able to buy a home.
The mayor and council leaders last week warned that the pace of housebuilding in the North East must increase to keep up with demand, particularly for affordable and social housing. Mayor Kim McGuinness wants to deliver a target of 15,000 new social and affordable homes over the next decade across Northumberland, Tyne and Wear, and County Durham.
