More than a million families face threats of being homeless by 2020

A combination of rising costs of renting, low wages and freezes to benefits could cause more than one million households to become homeless.

Rising rent, benefit freezes and a lack of social housing mean that more than a million households living in private rented accommodation are at risk of being homeless by 2020, according to a new report into the UK’s housing crisis called Shut out: households put at risk of homelessness by the housing benefit freeze.

The study by Shelter shows that rising numbers of families on low incomes cannot not only afford to buy their own home but are struggling to pay even the lowest available rent in the private sector, leading to record high levels of eviction and homelessness.

The Shelter report highlights that millions are left with no option but to look for homes in the private rented sector due to a shortage of social housing.

According to the report, in 83 per cent of areas in England, people in the private rented sector now face a substantial monthly shortfall between the housing benefit they receive and the cheapest rents. They add that this will rise due to austerity and the law of properties tilting the balance more in favour of landlords.

Graeme Brown, the interim chief executive at Shelter, said: “The current freeze on housing benefit is pushing hundreds of thousands of private renters dangerously close to breaking point at a time when homelessness is rising.”

Shelter added: “The upfront cost of private renting prohibits low-income households from accessing the private rented sector and means that many are forced to borrow, starting a tenancy in debt. For households experiencing multiple moves, the repeated costs of fees, deposits and rent in advance can pull them further into debt. Our advice services tell us that private landlords are increasingly asking for guarantors, who can be difficult for low-income households to secure.”