Renters to face more affordability pressures as expenditure increases

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Private renters are set to face affordability pressures long-term as expenditure rebounds quicker than incomes.

Between March and June falls in income from renters have been offset by a falls in expenditure on things like childcare, transport and recreational activities.

The research comes under a programme of work between the Department of Housing, Planning and Local Government and the Economic and Social Research Institute.

Conor O’Toole, an author of the report and a Senior Research Officer at the ESRI, said: “The very extreme and unique set of circumstances during the lockdown may have provided many households with a buffer to cover rental payments as other spending pressures declined.

“However, these are very short-term effects and unique to the lockdown. Many private renters face longer-term affordability pressures that are likely to worsen quickly as spending needs (such as on transport and childcare) rebound quicker than incomes.”

In terms of rental arrears, survey data suggest one-in-ten households missed payments prior to the pandemic and, given the affordability trends, this is unlikely to have risen substantially in the short term.

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Written by: Houseladder



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