70% of UK families struggle to pay rent or mortgage, or are already in arrears - but help is available
70% of UK families say they are struggling to pay their mortgage or rent, or have already fallen behind with payments, according to research published today by housing charity Shelter.
The prospect of losing one's home is undoubtably terrifying, but Shelter helpline advisor Liz Clare says that tackling things head on can make all the difference.
Read her post and tell us what you think. Are you struggling with mortgage or rent payments, or have you previously faced losing your home? Share your experiences on the thread below.
Helpline advisor, Shelter UK
Posted on: Fri 03-Jan-14 14:08:54
(40 comments )
When times are tough it’s easy to bury your head in the sand and hope that your problems will disappear. I think it’s a temptation we all feel, but working as an adviser for Shelter’s helpline I hear from families every day who are facing a battle to stay in their homes. This means I know all too well why it’s so important to resist that ostrich effect - tackling your problems early can be the difference between losing your home and keeping it.
Recently I took a call from Louise, who contacted the Helpline because her hours at work had been reduced and as a result she was struggling to make ends meet. She was looking for a full time job but hadn't found one yet, and the stress was overwhelming. So far, Louise had left all of the letters from her Housing Association unopened because she just couldn’t face them, and was terrified that she and her children would be left homeless.
Her story is all too familiar. We read about economic growth in the papers, but I speak to families every day who are finding things tougher than ever. When soaring housing costs are combined with wage freezes and the rising cost of food and fuel, it's easy to see why so many are living on a knife-edge.
If that's you, or someone you know, you aren't alone. Research released by Shelter today, based on a survey of 4000 British adults, found that a staggering 70% of families are currently struggling or falling behind with their rent or mortgage payments. Like Louise, many of us feel hopeless - but I know the difference that facing your problems head on and seeking advice as early as possible can make.
Louise's landlord should only have been taking formal steps to evict her as a last resort - the place to start was to work out a payment plan. She had loans and credit cards to pay off, which – now that her salary had been cut - was eating up almost all of her money each month. I put her in touch with a debt adviser to help see if she could reduce the payments and free up some extra cash - rent or mortgage payments should always be the top priority over other bills to prevent people from losing their homes. Louise also assumed she couldn’t get any benefits because she still worked, so we talked about applying for Housing Benefit.
We read about economic growth in the papers, but I speak to families every day who are finding things tougher than ever. When soaring housing costs are combined with wage freezes and the rising cost of food and fuel, it's easy to see why so many are living on a knife-edge.
I suggested that Louise talk to her landlord about her situation and ask for a little time to sort things out. There can be all sorts of reasons for falling into arrears, and it’s easy for anyone to slip into a downward spiral following a job loss or illness. The key is to get help sooner rather than later. Have a look at our pages on dealing with rent arrears and be brave – open your letters, listen to your voicemails, check your text messages. More often than not, it isn’t too late.
If you have a mortgage, falling behind with payments can feel even scarier. For many struggling homeowners repossession feels like a foregone conclusion, but it doesn't have to be. In November I spoke to Anthony, who'd had to take time off work following a bout of depression and, as a result, started to fall behind on his mortgage payments. He had since returned to work but was still struggling to keep up and feared that he would lose the house he shared with his partner and their 1 month old baby.
Thankfully Antony came to us with enough time to make a difference. We were able to help the family negotiate with their lenders and ultimately keep their home through the mortgage rescue scheme. This meant that they had a stable place to spend Christmas and are hopeful that they will get back on track this year - it's happy endings like this that make my job really rewarding.
All of us are different, so the options and solutions are different too: but tackling things early really could save your home. All lenders know they can only take repossession action as a last resort, which means they should consider all the alternatives. Keeping your lender on side by contacting them as soon as you're at risk of slipping into arrears gives you the best possible chance of keeping your home.
My message to anyone who’s struggling to keep up with their rent or mortgage payments is that you’re not alone – I speak to families every day who are in the same situation, and coming to Shelter for help as soon as you get into difficulties can be the difference between losing your home and keeping it. Thankfully we are always here – either online, on the other end of the phone (0808 800 4444) or face to face at our advice centres.
So, if you’re falling into arrears, don't succumb to the 'ostrich effect' and bury your head in the sand; seek help straight away. Help from Shelter is available 365 days a year to make sure that no-one has to fight bad housing and homelessness on their own, and with our help it is possible to win the battle to stay in your home.
By Liz Clare
I am a freelance writer looking for INTERVIEW SUBJECTS for an IPC women's magazine. The article is focused on money and learning from our money mistakes in regards to the below areas:
Someone that took on too big of a mortgage.
Someone that ran up their credit cards to put themselves in debt
Someone that lent a friend or family member money (enough money to put pressure on things at home and put pressure on that relationship between lender and lendee).
If you are willing to be interviewed for the magazine, I'd love to hear from you. firstname.lastname@example.org
One of the "key criteria" for money stress that surveys use is whether people do their food shopping on a credit card
they do not ask if that credit card is paid off in full every month
so the data are dodgy
as with all surveys, find out who paid for it and why.
I work full-time but cannot afford a holiday but i do pay my mortgage
Nope, I'm tup Norf. Those are actual 2 bed terraces for sale. I live very close to places that regularly feature in the 10 top worst places to live!
I do realise that we are unusual in housing prices. Many of DH's friends are in awe of our house, til we point out it is worth less than their london ish flat.
I wasn't trying to say that these prices are normal, just that many people don't realise quite how cheep houses up north can be. It makes the 70% even more unbelievable to me - but yes, salaries here are lower too!
addictedtosugar are those 2 beds at £40-50k shared ownership? The cheapest I can find here is a £58k 2-bed flat with 40% share. Then from £67.5k and £90k there were 2 non-shared ownership 2-bed flats, and a lot of retirement and park homes. Another 2 flats at £90-100k only (and a lot more mobile homes). I think it's fairly slim pickings to get anything under £100k. I didn't look at anything over £100k but I still see many mobile homes at £100k.
This is in Hampshire.
The only fair way to do this kind of survey is to look at how many people are paying an unacceptably high percentage of their total income (including tax credits, HB, CB etc) for the thee basics; housing, power/heat and water. I'm not even factoring food and clothing into that because again, food and clothing spending is very subjective.
If you look at the disposable income people have after those three essential things (and excluding any debts/credit they may have) then you will get a truer picture of what 'struggling' means in real, quantifiable terms.
I could be earning 100 grand but still 'struggle' if I insisted on living in a four bedder in Richmond and paying school fees and driving a brand new BMW. (in fact I doubt you even could do all those things on 100k) But no-one living sensibly within their means could seriously argue that they struggle on 100k, when compared to very low income families.
And all sorts of people run up arrears on rent and mortgage, from the genuinely struggling who have suffered illness or redundancy or business failure, to the Flash Harrys who have bitten off more than they could chew, even though they had more than most in the first place.
That's why I can't even be bothered to read past the ridiculously sensationalist headline - without more clearly defined parameters it means zilch.
yep...once Id got through the mobile home parks for the over 60s and shared ownership, the cheapest two bed flat here was "offers in excess of Â£100k".
So it's the south east that's predominantly expensive which makes the 70% figure odd..,did they only sample from the south east?
I suppose it depends on where you live but many are tied to areas for work and/or family reasons.
will do a Rightmove search for my area but doubt anything under Â£100k here. Essex.
I too have suspicions about the 70%, but whatever the figure, it is frightening that people are struggling when assistance is at hand.
Jake I've just done a right move search. Min 2 beds, within 10 miles of here. 265 under 50K, and aprox 100 under 40K. Many of these are 2 and 3 bed teraces with GCH.
Mortgages were not so high when interest rates were up before. My mortgage a4 the tines was Â£40k and I could easily manage the interest rate increase on my salary as a single person.
it was my first property and I doubt that ANYONE now can buy a first prperty (2 bed flat) for such a paltry amount.
No wonder some people are struggling.,,..not because of fancy phones or holidays but just because their housing costs now are huge.
If this percentage of folk are struggling with interest rates being the lowest for years goodness knows how everyone will manage when the rates go up. Try having to cope with 8 - 15% rates, then there should be a problem. No, the job situation isn't any different from when the rates were that high, unemployment was rife. Folk though had different priorities, equivalent today would be only a pay as you go phone, no fancy model or contract; no foreign holiday or even a holiday away anywhere at all; clothes were bought for a season at least, not for a night out; and of course; none of the must haves for cars, tvs; oversized fridges that just encourage buying too much food, eating out;houses, toys bought throught the year not just for birthdays/Christmas.
Surprised at this attitude. In spite of living away from family so no support there, did manage to work part time then full time; had a husband who couldn't lend a hand with child care his work requiring he worked shifts and 3 out of 4 weekends. Of course times were hard, but we did what the old adage suggests - we cut our cloth to fit our income basically. If we couldn't afford something, we did without. Something a lot of folk nowadays do not seem to be able to understand or accept.
I dont know anyone struggling to pay their mortgage.
But LEM such a daft figure as 70% being bandied about doesn't make people sit up and listen. It makes them think 'what a load of bollocks, stupid single-issue organisation', and switch off.
I do yougov surveys for the pocket money that they (eventually) pay. (2.5 years to get £50, although you never get screened out). I'm not struggling, but it is not something that those with plenty of money will do at that pay rate. so the results will be skewed.
that sample is statistically invalid. And the way that yougov phrase things will also skew things.
not belittling people's problems - but this is sensationalism.
I had a quick look at the story through the link and it seems it was based on a yougov survey in which people were asked if they felt there were struggling. So, it's sort of impressionistic.
There will be people falling into arrears and it is important to get the message to people about how to handle the problem. And not to have them think that Wonga and the debt consolidation people with their big budgets for TV advertising are the only solutions.
And LEM it really didn't help when a good charity come up with statistics like this that aren't believable. I know there are people who are in arrears in rent/mortgage. But by using sensationalist statistics like this, it's hard to make people take them seriously.
I don't believe the 70% either. Maybe their population is based on people who contacted Shelter?
Struggling is such a objective thing. PIL are on the bread line, living on state pension with a mortgage to pay. But they don't act like that, eating out more than we do, have a more expensive sky package etc. They got into financial trouble before xmas because they let a neighbour used their phone and ended up £100 in call charges.
On the other hand, I feel we are struggling on a much higher income and also with a smaller proportion of our income paying for mortgage. I just worried a lot of savings and retirement. I even complained to DH for spending £5.50 on two ready meals! (Well they are bloody expensive aren't they)?
LEM, youe post summed up how I felt about this. BUT....the other posters here have a point. If thw figures are sensationalist then eventually the very serious issues behind them will be lost and that woukd be a pity because undoubtedly many many people ARE struggling with their rent or mortgage.
This statistic discredits the article for me which is a real shame
I would rather the % be skewed in order to make people sit up and listen
That's a personal choice; I would prefer the truth, not exaggeration. My immediate reaction to the OP was "this sounds remarkably similar to those people who claimed enormous numbers being homeless" so I checked it out and, yes, it was the same charity. I then thought "fool me once, shame on you; fool me twice, shame on me" and didn't bother reading the article.
You are a minority of the posters so far. They are putting off most people with (very obviously) dodgy statistics. We are all quibbling about percentages instead of discussing the matter in hand, which is a bit of a PR failure on their part.
but people who are struggling how ever many there are will read and gain some advice.
Right LEM. Calm down.
If you have ever read any of my posts you will know I am not a believer in teh feckless few by a long mile.
However this stat is blatantly wrong and by a long way. One in five or twenty percent struggling is IMO more than enough to worry about. Using blatant headline mongering and stat twisting like this only does what should be a very important campaign a disservice; it puts it on a footing akin to daily mail style journalism AND a lot of people will read only the headline, think well that is blatant nonsense and disregard the rest, thus losing the good advice.
Poorly judged shelter, really poorly judged.
lets hope people just readthe link LEM, as i did initially.
it is helpful and a reminder for me personally to pay my rent in favour of other debts.
Wow - someone posts a very helpful and reassuring post and people are quibbling over statistics! I have struggled with my mortgage and we are still in arrears due to my DP being fucked over by an employer last year - that is going to court. Quite frankly i don't care if the statistics are wrong, but you pedants bust a gut - its not that bad, its just the feckless few isn't it Why not accept it as a bit of publicity for a charity that does what it can to help people facing homelessness. Just because someone isn't living in a cardboard box doesn't mean they aren't homeless. What does struggle mean? it doesn't mean arrears. People ARE struggling and people ARE losing their homes - i would rather the % be skewed in order to make people sit up and listen and realise that help is out there than do the opposite, you know, what the government do and skew their statistics to paint a rosier picture.
Really disappointed that people have done this
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