Future generations facing poverty over rise in rents
Rising private rents risk placing more of future generations in poverty while increased social rents may add billions of pounds to the housing benefit bill, a new report claims.
A lack of house building is said to be at the heart of the potential worsening situation for UK renters, with political leaders urged to act to prevent today's children being left with a housing market that increases their chances of living in poverty.
Projections suggest private rents could rise 89.3% by 2040 when compared to pre-recession prices in 2008 but income over the same period may only increase by 40%.
It suggests real household income will be £45,500 in 2040 compared to £32,300 in 2008 while median average private rent prices for a two-bedroom property increases to £250 per week from £132 per week.
If this occurred, then the report believes 5.68 million private renters would live in poverty in 2040 compared to 3.1 million in 2008.