An estimated 4.8 million households across England have housing affordability problems, a report has found.
This equates to more than one in five households across the country, according to the findings from the Affordable Housing Commission.
Households with dependent children make up 57 per cent of those facing housing affordability problems.
The Commission said that when rents or purchase costs exceed a third of household income for those in work, it can lead to financial difficulties, arrears, debts and other personal problems. It said the problems become critical in cases where housing costs eat up 40 per cent or more of household income.
In the private rented sector, four out of 10 of all those in the bottom half of incomes are paying more than 40 per cent of their household income in rent, the report said.
It estimated the number of households with affordability problems has increased by more than half a million since 2010, with the largest upswing coming from the private rented sector.The report also estimates that there are 1.6 million renters, mostly in the private rented sector, who could afford to buy a home but are unable to, mainly because of the need for large deposits.
Lord Richard Best, chairman of the Affordable Housing Commission, said: “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 per cent of the market level is still far beyond the means of many who need a home."
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