Home Insecurity Faced By Millions Due To Cash Crisis

A new report published by Shelter includes MORI Social Research Institute poll findings that, of those who pay for their housing, 43 per cent have worried about or been unable to pay their rent or mortgage, representing almost 11 million people.

More than one in five people have struggled to pay their rent or mortgage due to financial insecurity and the high cost of housing in many areas (1), according to a new report published by Shelter. The charity is launching Shelternet, a free, online, housing advice site today (30 May 2002) to extend the help it gives to anyone facing a housing problem.

The report, Home Insecurity: Shelter and Halifax online to keep the roof over your head, includes new MORI Social Research Institute poll findings which show just how widespread the housing crisis is. Of those who pay for their housing, 43 per cent have worried about or been unable to pay their rent or mortgage, representing almost 11 million people. Two per cent, equivalent to half a million people, were unable to pay last month's rent or mortgage. In total, 11 per cent, equivalent to around three million people, have previously been unable to pay their rent or mortgage.

The report analyses the most common money problems facing over 16,000 people who sought help from Shelter because they were at risk of losing their homes (2). 36 per cent had rent arrears, 35 per cent had problems with housing benefit, 12 per cent were struggling to pay high rents, 9 per cent had problems paying their mortgage and 8 per cent had problems paying or getting back their rent deposits.

The MORI poll also revealed a core group of people who are particularly vulnerable. More than a quarter (28 per cent) of those who pay for their housing had no savings to fall back on to cover their housing costs. And with the average rent or mortgage payment in England at 163403 a month; Shelter is warning that any sudden change in circumstances such as unemployment, ill-health or higher housing costs would immediately put homes at risk.

Shelter is concerned by its own evidence that most people seek housing advice too late; when they are about to or have already lost their home. Its MORI poll shows people would first go to their bank or building society (32 per cent) or their family (13 per cent). A further 5 per cent, equivalent to over 2 million people, would consider using a free housing advice website such as Shelternet. The charity wants people to realise Shelternet can help straight away and with any degree of housing problem.

Notes

  1. 43 per cent of those who pay for their housing (53 per cent of total) have either missed a rent or mortgage payment or worried about doing so. 43 per cent x 53 per cent x 46,000,000 = 23 per cent (over one in five)
  2. Source: Shelter Information Team from Shelterline and Housing Advice Centres
  3. Shelternet www.shelternet.org.uk is a free, online housing information service developed by Shelter in partnership with the Halifax. Shelter, the leading provider of independent housing advice, has launched the site to provide people who are facing housing problem or homelessness with information to begin addressing their problems and find out their rights.
  4. Shelter is a campaigning charity that every year works with over 100,000 homeless or badly housed people. It runs Shelternet: the home of housing advice online (www.shelternet.org.uk) and Shelterline, the UK's free, 24 hour, national housing advice line on freephone 0808-800 4444.
  5. MORI interviewed a nationally representative quota sample of 1,982 adults across 191 constituency based sampling points throughout Great Britain. Interviews were conducted face-to-face in respondents homes between 21-26 March 2002.

Main Findings

Problems paying for housing

  • More than one in five of the adult population, around 11 million, have struggled to pay their rent or mortgage
  • Of those who pay for their housing (53 per cent), two per cent, around half a million people, have had problems paying their rent or mortgage in the last month. A further nine per cent, over two million people, have had problems paying for their housing at some time in the past (longer ago than the last month)

Average housing costs

  • On average, people pay 16393 a week (163403 a month) for their housing

Little or no savings to fall back on

  • Of those who pay for their housing (53 per cent), 28 per cent had no savings to fall back on, representing around 7 million people. Half (49%) only had savings of 1631,500 or less.
  • 75 per cent of people who had previous problems paying for housing, have less than 1631,500 in savings. They are particularly at risk of having problems again.

Use of Shelternet for housing advice

  • Of those polled, five per cent, which translates to over 2 million people, would consider using a free housing advice website, such as Shelternet

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