Over 400,000 Households In London Spend More Than Half Their Income On Housing

Around 430,000 households across London – containing 990,000 people – spend more than half of their income on housing costs. Analysis shows that the proportion of ‘housing pinched’ households in London (those spending more than half of their net income on the cost of housing) increased sharply in the years running up to the financial crisis – peaking at around one in seven households in 2008. The analysis shows that people living in London are significantly more likely to be housing pinched than the rest of the UK, and the gap has grown in recent years. 71 per cent of London’s housing pinched population are in working households – far more than the UK average – and the majority (54 per cent) are renters, rather than homeowners. The analysis shows that 24 per cent private renters in the capital spend more than half of their income on housing costs, compared to 12 per cent of mortgagors and 8 per cent of social renters. Read more on the Resolution Foundation website.

Working Poor Forced To Spend Half Their Income on Housing

Close to 1.6 million UK households – the housing pinched – are spending more than half their disposable income on the ongoing costs of housing each month.  Of the 1.6 million, retired households and working age households in which nobody works account for just over a third (7 per cent – 110,000 households – and 30 per cent – 480,000 households – respectively). Leaving these two groups aside, there remain close to 1 million working households who are spending over half their disposable income on housing costs. Data from the estate agent LSL Property Services showed rents rising more quickly than inflation, increasing by 2% since July 2013. The Council of Mortgage Lenders (CML)have  also issued a warning on interest rates, despite reporting a fall in the number of borrowers struggling with repayments. Read more on the Resolution Foundation website.