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March 2022 - Housing

Survey finds almost a quarter of tenants cannot afford housing association rent rises: A survey of tenants has found that almost a quarter polled in a survey by the Social Housing Action Campaign (SHAC) cannot afford the rent rises that are due to take place in April 2022.

The preliminary findings of the SHAC survey revealed that around 85% of the 150 tenants polled said that they stand to be impacted by the rises, with one in six (59.8%) saying that expect 'some impact' for which they will have to cut back on other expenses in order to be able to pay their rent. A quarter report that they will 'seriously impacted', and will not be able to afford the rent hike (24.5%).

Of the respondents who said they are not likely to be impacted, just 5.9% said they can afford the increase, while 9.8% said it will have no impact on them because their rent is paid through benefits.

SHAC is calling on housing associations to freeze rents, arguing that tenants may face eviction.

Rising rents...

Rents are about to rise by an average of 4.1%, according to the research, however, 10% of social tenants are going to see their rent rise by 7% or even 10%. One in 20 respondents will see their rent rise by more than 10%.

SHAC asserts that as people struggle to make ends meet with increased costs for travel, food, energy and fuel, increased rents will push tenants into serious financial peril. This too, stands to impact on housing associations, which provide support services for tenants. Housing Associations will also stand to incur financial costs due to eviction processes, says SHAC, also highlighting that 'reputational damage could also be severe'.

The increases will affect around five million tenants and will see average rents rise by £202 per year, according to the Resolution Foundation. SHAC also states that housing associations can afford to cut rents.

Suz Muna, from SHAC said of the findings:

“Rent and service charge rises at this time, with all the other financial pressures on household budgets, will surely drive many thousands of tenants into arrears. While the housing association sector collectively sits on surpluses of more than £4billion, no increase can be justified.”

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