Fifth of households are struggling to afford their rent or mortgage, report finds – The Sun

A FIFTH of households are struggling to afford their rent or mortgage.

The figure of 4.8million homes is up by more than 500,000 since 2010, says the report for the Affordable Housing Commission.

And of those who are struggling — 57 per cent are households with dependent children.

The largest rise has been in the private rented ­sector where more than four in ten are in trouble. The commission says that when rents or purchase costs exceed a third of household income it can lead to arrears, debts and personal problems.

These become critical where housing costs eat up 40 per cent or more of income.

The report also says three quarters of renters have little chance of getting on the housing ladder. And it blasted ministers for saying homes are affordable if they are 80 per cent of market price.

Commission chairman Lord Richard Best said two million renters have to spend 40 per cent of income on housing costs.

He added: 'The term 'affordable' has become a much-abused word in housing circles. Successive governments have taken it to mean 'rents or purchase costs which are lower than in the open market'.

"But paying rents of, say, 80% of the market level is still far beyond the means of many who need a home.

"At a time of national concern about levels of poverty and inequality, our Commission wanted to find out how people's housing costs are fuelling the situation.

"We have looked at the scale of the problem and redefined measures of 'affordability', to take into account the impact it has on people's lives, looking at what people can pay for housing without risking financial and personal issues."

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