Housing affordability study: Findings report

3. Experiences of housing affordability

This chapter explores participants’ experiences of affording housing costs, including affordability concerns, how affordability affects choice and the differences in experiences between social and private tenants. Participants’ housing aspirations are also discussed.

Housing affordability concerns

The affordability of housing costs was an area of concern for many of the tenants consulted. Participants were generally able to meet their monthly housing costs, but many said it is difficult to do so, with a few describing it as ‘a stretch’ each month. It was noted that increases in other living expenses, most notably energy bills, alongside stagnant incomes have added to financial worries.

Nearly all tenants reported making trade-offs or sacrifices to afford core housing costs. Many said they had to reduce their spending on other essential costs, such as food and energy. Examples included: avoiding the use of central heating and instead going to bed early to keep warm; turning lights off early; and washing clothes in the middle of the night to take advantage of cheaper ‘off-peak’ electricity rates. Some participants reported making compromises on the choice, quantity, quality or freshness of the food they buy, for example relying on the reduced prices section at the supermarket, using foodbanks, or simply buying less.

“By the time I pay most of my expenses, there’s not a whole lot leftover and I have experienced getting to the end of the month and being like, ‘I’ve got this amount of money and I have to eat for the next four days, and I just don’t know how I’m going to do that.’” (Private tenant)

“I like my house, I have to pay for the gas and electricity so I compromise on the food.” (Social tenant)

Several participants said they had to reduce or eliminate non-essential costs like hobbies, leisure pursuits and socialising. For example, many reported having to cut down on or avoid visits to the cinema, cafes, bars, restaurants and sporting events. Some felt unable to treat themselves to things like new clothes, toys for their children or holidays.

“I don’t really see people or do things. I feel like going out socially seems extremely indulgent, even just meeting a friend for a coffee. Sometimes I still do it, but it’s always a difficult choice to make and there’s a lot of times that it’s just not an option at all.” (Private tenant)

“I love my football but I gave that up because I couldn't afford it. You've got to pay your rent, you've got to make sure you've got a roof over your head and pay your electricity.” (Social tenant)

Two participants had given up their car in recent years because they could not afford the running costs, and others said they could not save as much money as they would like to.

There was some discussion of the impact of housing affordability stress, with participants describing a toll on their physical and mental health and quality of life. Two participants had experienced homelessness in the past due to a lack of affordable housing, and others commented on the stress, anxiety and worry associated with meeting housing costs.

“I’ve experienced homelessness on and off for the last ten years because of the unaffordability of housing… The moment I get paid, it’s a massive amount of stress for me to put that money to one side and know that in the last week of the month, I can’t afford anything. So no, I’m not comfortable and it causes a significant amount of mental and physical health problems, the worry of it all.” (Private tenant)

“Stress always crops up about it. Sometimes I think about what if something happens to me, my family would be left in terrible circumstances, I don’t have the savings or the backup for the next six months for them, I don’t have it.” (Private tenant)

One participant felt they had sacrificed their physical and mental wellbeing in order to pay rent. They described being signed off work due to ill health, but having returned to the workplace before fully recovering as they could not afford to pay rent on statutory sick pay.

Rent increases

The majority of tenants said their rent had increased within the past year. Most felt the increase was reasonable and affordable, for example by a small percentage or £10-£20 a month. However, a few were struggling to meet the increased cost.

“I know the council say, ‘we’re only putting it up 3 or 4%’, but that’s still taking food off the table for people. It might not look like much to the council, but it’s a lot for a lot of people.” (Social tenant)

Some social tenants discussed being consulted as part of the rent increase process, with landlords approaching them with different proposals and asking them to vote for their preferred option. For example, one said they had been given a choice between an increase of 5% and losing some services, or an increase of 10% and all services being maintained.

Some rent leniency and flexibility was mentioned; mostly by social tenants who described their landlord as being understanding and helpful in situations where people were struggling financially. One private tenant had also experienced leniency with their rent, but they attributed this to policies introduced to protect tenants during the COVID-19 pandemic.

Choice

Both social and private tenants described a limited choice of accommodation, but for different reasons. Social tenants said that due to the high demand for social housing, they lacked choice and felt obliged to accept whichever property was offered.

“The availability of properties through housing associations is limited so a lot of the time you don't get a huge choice where you apply… You could apply for 50 houses and not get one.” (Social tenant)

“There were new build houses… 14 just came up and over 200 folk applied for them… it's really hard to get housing full stop.” (Social tenant)

Two social tenants felt their accommodation was unsuitable for their needs but could not move home due to a lack of available housing. For example, one woman with mobility issues lived on the third floor of a tenement, and as a result was unable to leave the flat most days; she said the situation was causing significant harm to her mental health. Another expects to require a wheelchair in the future due to her health condition but is concerned that her property is not suitable to accommodate this.

“I’ve got mobility issues and I’ve got three flights of stairs to get up to my flat... You take what’s available because you don’t know how long it’s going to be before they offer you another one. There’s not enough properties for everyone on the list.” (Social tenant)

“The tiny kitchen… if you were in a wheelchair, you couldn't turn around and come out… and the door to the bathroom is actually too narrow for a proper wheelchair. I don't know what's going to happen when I end up in one.” (Social tenant)

Limitations in choice for private tenants were more likely to result from cost and budget. Some felt priced out of more desirable areas and said they could only afford to live in more deprived neighbourhoods with some social and environmental problems. Others said they paid a premium to live more centrally.

“It’s hard to find a house that fits you and you can afford.” (Private tenant)

“Really poor quality housing, terrible services and a total lack of provision… I don’t think it’s a choice people would make to live here; I think they live here because they have to.” (Private tenant)

Restrictions put in place by landlords can also limit the options available to renters. For example, one private tenant said it was difficult to find a landlord who accepts pets and had decided not to disclose that they have a dog in order to find a place to live. Others described private landlords imposing restrictions based on prospective tenants’ finances; for example refusing to let to households in receipt of state welfare, or those that do not meet a certain income threshold.

“The private rental market is getting increasingly out of hand, to the point now where if I were to leave this place and try rent somewhere else privately, it would cost me over half of my salary. I probably wouldn't even get seen by an agency based upon my earnings.” (Private tenant)

Differences in experiences of social and private tenants

Overall, the housing experiences of social renters in the study were more positive than those of private renters, in terms of affordability, security, and relationships with landlords. Social tenants described feeling better protected than private renters, and social landlords were viewed as more accountable over their properties' condition. For example, one social tenant recalled reporting a problem with their bathroom, and within weeks, the entire bathroom had been replaced at no cost to the tenant. This contrasts with one private renter’s experience; they were left with rotten window frames for 14 months and the issue was only resolved through support and intervention from their tenants union.

“If I have a problem, I can get action through the council. Whereas in the private sector, it’s, ’if you don't like it, somebody else will. I’ll bump the rent up, throw you out and then bring somebody else in.’ That’s the crux of the problem with the private against the social. With the council, I'm protected…they can't just throw me out on the street.” (Social tenant)

Housing aspirations

Some participants reflected on their housing aspirations for the future; a few wanted to own a home and believed this was attainable within the next few years. For two participants, the aspiration of home ownership was attached to getting married and starting a family, with both stating they would want to own a home before taking this step.

“For me, it’s something I see as possible. Hopefully soon I’ll have a family and have kids and I wouldn’t want to stay in a rented home, I’d want to buy my own. So it’s something I’m having to budget for in terms of saving in the long run.” (Private tenant)

Many other participants shared the aspiration of home ownership, but felt it was unachievable or unrealistic in their current circumstances due to low income, the inability to save for a deposit and/or poor credit history. Some of these individuals expected that they would be renting for the foreseeable future, if not for the rest of their life.

“I’d love to own a house but it’s not financially possible for me to do that right now. I would struggle to save enough for it. It’s a difficult thing to think about. It’s not really an option so I just don’t think about it. It’s more about getting through month to month at the moment.” (Private tenant)

While some were frustrated and disheartened by the prospect of long-term renting, a number of social tenants were content to rent indefinitely. A few described renting as less stressful than owning a property, as the tenant is not responsible for property maintenance or at risk of bankruptcy through defaulting on the mortgage.

“Been there, done that, owned my house, been stressed out, trapped in paying mortgages. I'm quite happy living in a totally stress-free environment.” (Social tenant)

Others recognised lifelong renting as the norm in other countries and desired less stigma about this in the UK.

“I hate that there’s still this stigma around renting versus owning. Like, ‘oh, you don’t own?’ Whereas in some countries and cities it’s totally acceptable to rent for your entire life.” (Private tenant)

“It’s maybe the wrong attitude saying you have to own a house to be validated. There’s other countries that don't; Germany, Italy - they don't. That's not the main thing in life… You can't take it with you at the end of the day.” (Social tenant)

Some participants’ housing aspiration was to see reform in the rental market, including:

• lower rent costs;
• greater landlord accountability;
• widespread improvements in the quality and standards of rented accommodation, such as the elimination rising damp and more energy-efficiency measures and insulation; and
• greater tenancy security.

“It would be both spending less money on rent but also having security - regardless of whether it’s council, social or private - that if my circumstances changed that house remains my house.” (Private tenant)