Private tenants are twice as likely to have problems managing their debts as the general population, data from charity StepChange shows.
It says 15% of private renters, or 1.1 million people, are in problem debt, compared to 8% of the general population.
The charity adds this figure for renters has risen by 4% since January.
The body says the government’s Renters’ Reform Bill, introduced to parliament last week, is a good start, but more needs to be done to protect vulnerable tenants.
Half of all private renters have seen their rent rise in the last 12 months, according to its new report, Trapped in Rent. It points out that 1.2 million private renters, or 17%, “are using credit to make ends meet”.
The charity defines debt problems by a range of measures, such as paying the minimum repayments on debts, using an overdraft in each of the last three months and using credit to pay essential household bills.
The report says the knock-on effects of falling into debt while renting privately have “manifested themselves in poor health and wellbeing, with three-in-four private renters saying that they or their family had been negatively affected by housing issues”.
StepChange director of external affairs, Richard Lane says: “Against the backdrop of a frenzied rental market, where bidding wars, sky-high deposits and rising rents are commonplace, those who are financially vulnerable are often left with no choice but to take on unaffordable, insecure, poor-quality accommodation just to keep a roof over their heads.
“The government’s Renters’ Reform Bill will rightly withdraw landlords’ rights to carry out no-fault evictions, but there is more to do to protect those who should be in socially rented accommodation but have no hope of accessing it.
“Unless we see benefits that cover the real cost of renting, alongside strengthened rules that protect financially vulnerable tenants who fall behind on their rent, the cycle of debt and housing insecurity will be doomed to repeat itself for millions of people.”
