One million working households are ‘housing pinched’

15th August 2014

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One million working households are ‘housing pinched’, spending more than half of their income on rent or mortgage payments.

 

Research from think-tank Resolution Foundation, reveals 1.6 million households in the UK are ‘housing pinched’. In a third of those are households nobody works meaning there are one million households that are working but still spending half their disposable income on housing costs.

 

The think-tank said the housing pinched are not well-off households choosing to spend a large chunk of income on expensive homes, just 40,000 working households who are housing pinched have larger incomes.

 

In contrast 830,000 households have incomes below the national average. Those who are housing pinched are also more likely to rent privately, be young and live alone, and live in London.

 

A total of 11% of working London households are housing pinched, compared to 3% in the north-east and Northern Ireland.

 

A working household where the head is under 25 has a 12% chance of being housing pinched, which drops to 7% for the age group 25-30.

 

The number of housing pinched has grown considerably since the early 2000s and the problem is expected to grow as interest rates increase and house prices continue to increase.

 

The Resolution Foundation report said: ‘It is likely that a return to house price growth in the years following 2011/12; expected rises in interest rates that will push up costs for many mortgage payers; and slow income growth across much of the distribution will combine to put even more households in the position of spending a very high share of their income on housing.’

 

Laura Gardiner, analyst at Resolution Foundation, said the government needed to increase the housing supply to drive down costs ‘otherwise we can expect to see a steady rise in the number of households that are ‘housing pinched’ over the coming years’.

 

 

 

 

 

1 thought on “One million working households are ‘housing pinched’”

  1. therrawbuzzin says:

    Let’s call it its proper name: shelter poverty.
    The threshold for shelter poverty is 25% of income.
    How many millions living in misery for the benefit of other householders’ feel-good factor?

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