BRITAIN is risking a homelessness crisis as a new survey reveals the majority of private renters now do not have enough to pay a month’s rent if they lost their job. 

Charities have said the milestone is “terrifying” and that immediate action is needed to protect millions against the ballooning rental costs during the cost-of-living crisis.

Polly Neate, chief executive of Shelter, which carried out the survey, said: “Private renters up and down the country are facing a crisis like never before.

“Decades of failure from government to build enough social housing means that the pressure on oversubscribed private renting is worse than ever.”

The housing charity’s poll found that 51 per cent of private renters in England — 3.2 million people — would not be able to keep paying their rent for a full month from their savings if they lost their job.

More than a third polled said they would be unable to pay any rent at all from savings if they became unemployed, with 55 per cent adding they have experienced a rent hike in the past year.

Some 37 per cent who were struggling to pay or were already behind on their rent cited an increase in monthly payments.

“The severe lack of social homes means swathes of people are barely scraping by as they’re forced to compete for grossly expensive private rentals, because there is nothing else,” said Ms Neate.

“With food and household bills continuing to surge, the situation is precarious for thousands of renters who are one pay cheque away from losing their home.” 

The survey of 1,498 working adults who are private renters was carried out by YouGov in June and also showed a worsening picture following similar research in 2021.

That found 39 per cent of working renters said they would struggle to pay a month’s rent from their savings if they became unemployed.

Ms Neate added: “The time for piecemeal policies is over. To jam the brakes on the housing emergency we need a genuinely affordable alternative to private renting.

“We know social housing works for most people because it’s secure and the rents are tied to local incomes.

“Instead of empty words, the government and every political party must sign up to building thousands more social homes.” 

Generation Rent chief executive Ben Twomey said: “This survey reveals a painful truth — renters are in a more precarious position than ever.

“In such an uncertain economic climate, it is terrifying that over half of renters may not be able to find money to pay their rent if they were to suddenly lose their job.

“Without urgent action, thousands more families in England will face homelessness.

“That these same renters, through no fault of their own, could potentially lose their home if their landlord chose to evict them with a Section 21 eviction is equally worrying.”

He called on ministers to provide immediate support to renters as well as longer-term solutions to “the cost-of-renting crisis that is devastating communities across the country.

“We need to see local housing allowance payments unfrozen, an increase in discretionary housing payments, a return of the £20 uplift in universal credit and an urgent effort to build more homes,” he said.

“These measures, combined with the passing of the Renters (Reform) Bill, would protect tenants from imminent homelessness and give hope that things can and will get better.

“Change is long overdue but has never been so desperately needed as right now.”

A Momentum spokesman accused the Tories of “abandoning an entire generation to precarity.”

He said: “To fix their mess and build a housing system which works for ordinary people, we need rent controls, mass council house building and the abolition of right to buy. Sadly, Labour is currently failing to offer the alternative we need. Renters across the country deserve better.”

The Salvation Army’s Lt-Col Dean Pallant called for “urgent action” to increase the number of affordable homes or the number of homeless will continue to rise.

A government spokesman said: “We have a strong track record of delivering affordable homes to rent and buy across the country.”