1. How are Britons coping with housing costs: the implications for Shelter advice services?
Housing Studies Association, York 2012
Catherine Davie
Senior Research Officer

2. Who we are and what we do
Current context and challenges
How people are coping
How Shelter is responding

3. Who we are, and our purpose
Our vision
Shelter believes that everyone needs a home
in a place where they can thrive. Our work
won’t stop until there’s a home for everyone.
Our goal
Our ambition for this strategy is to help more people in housing need than ever before.

4. What we do A national network of over 40 advice and support services
Free housing advice helpline
Online advice (shelter.org.uk/getadvice)
National Homelessness Advice Service – second tier advice
Specialist services promoting innovative solutions to particular homelessness and housing problems
We also campaign for new laws and policies – as well as more investment – to improve the lives of homeless and badly housed people, now and in the future.

5. Current context and challenges

6. Unemployment is rising

7. Real earnings are decreasing

8. More people are living in overcrowded conditions

9. Homeless acceptances are now rising

10. Households in temporary accommodation are starting to rise

11. More people are claiming housing benefit

12. Private rents are rising

13. Any rise in interest rates risks putting a significant number of home owners under threat of arrears and repossession

14. Statutory funding for advice is being reduced
£350 million cuts to the legal aid budget
595,000 cases cut, including 52,000 housing cases
40% of all legally aided housing advice to go
77% funding cut to the not-for-profit advice sector
Plus local authority funding cuts to advice in addition

15. And demand for Shelter’s services is increasing
Visitors to
Get Advice Q
429,921 Q
494,065

16. How are people coping?

17. How much are we spending on housing?

18. People are spending less on treats and luxuries, food and fuel to help meet housing costs

20. People have used savings, are saving less and are relying on credit to meet their housing costs
In the 12 months to December 2011:
18 per cent of adults in Great Britain have used their savings to help meet their housing costs
16 per cent have reduced the amount they save
15 per cent (equivalent to 7 million adults) have relied on credit to meet their mortgage or rent payments

21. Using credit to help pay for housing
15 per cent of GB adults have relied on credit to meet their mortgage or rent payments with
8 per cent (equivalent to 3.7 million adults) borrowing money on a credit card, an increase of 38 per cent (equivalent to a rise of 1 million adults) since August 2010
6 per cent (equivalent to 2.9 million adults) going into an unauthorised overdraft
3 per cent (equivalent to 1.4 million adults) taking out another type of loan
2 per cent (equivalent to 936,000 adults) taking out one or more payday loans

24. More than a quarter of private renters are relying on credit to meet their housing costs

25. Of those borrowing on credit cards…
You said you/ your partner borrowed on a credit card to help meet your mortgage or rent payments…In which of the following ways did you/ your partner use the credit for this in the last 12 months? (i.e. since Dec 2010)? (Please tick all that apply)
I/ we paid for other goods/ services on my/ our credit card so that I could use the money in my/ our current account to meet housing costs
66%
I/ we paid for food on my/our credit card so that I/ we could use the money in my/our current account to meet housing costs
55%
I/we paid for utility bills (including heating bills) on my/ our credit card so that I/ we could use the money in my/ our current account to meet housing costs
20%
I/we got a cash advance (took out money on my/ our credit card from a cash machine) to pay our mortgage/ rent directly
16%
I/we paid for phone bills (including mobile phone bills) on my/ our credit card so that I/ we could use the money in my/ our current account to meet housing costs
15%
I/we transferred money from my/ our credit card directly to my/ our mortgage lender or landlord 3%
Base: All GB Adults who have borrowed on a credit card to help meet their mortgage or rent
277

26. A quarter are only making minimum payments on their credit card bill
41 per cent (equivalent to 1.5 million adults) didn’t pay off the balance in full, but paid off the most they could afford each month and made at least the minimum payment
26 per cent (equivalent to 961,000 adults) only paid the minimum payment every month
14 per cent paid off the balance in full every month and 9 per cent paid off the balance in full most of the time
3 per cent (equivalent to 107,000 adults) didn’t make the minimum payment once or twice
and a further 3 per cent (equivalent to 114,000) didn’t make the minimum payment 3 times or more

27. Significant minorities are using credit regularly to help meet their housing costs
You said you or your partner has borrowed money to help meet your mortgage or rent payments...Thinking about the last 12 months (i.e. since Dec 2010), for each of the following, please indicate how many times you/ your partner did this
Borrowed on credit card :
Borrowed money from friends/ family :
Gone into unauthorised overdraft
Taken out another type of loan:
% of GB adults 8% 6% 3%
Once or twice
47%
54%
41%
71%
3 to 5 times
25%
27%
33%
10%
6 to 11 times
13% 7%
More than 11 times (i.e. every month) 4%
12% 2%
Can't recall 9%
Base
277
297
214
105

28. Are people coping or struggling with housing costs?

29. Are people coping or struggling with housing costs?
Who is struggling?
Unemployed people
Households with children
25-54 year olds
Households on low incomes are struggling most (18%) but
Households on up to £49,999 report average (9%) or above average levels of struggling

30. There’s little change in the extent of struggling since 2008

31. Renters are struggling more than mortgagors

32. But there’s still little change in the extent of struggling since 2008

33. Are people coping by using credit?

34. How is Shelter responding?
Increasing the reach and extent of our advice services to help prevent housing problems
Developing multiple channels for people to access advice in the way that best suits them
investing in phone services/ telephony to answer more calls
enhancing our digital offer, online tools etc
marketing digital and face-to-face services

35. How is Shelter responding?
Increasing digital services’ capacity and content

36. How is Shelter responding?
Creating Shelter hubs to provide advice and support services in areas of greatest housing need
Developing services for professionals so LAs and other bodies are better able to support those in need
Looking to expand family support services
Lobbying and influencing to protect face to face services

37. How is Shelter responding?

38. Senior Research Officer
Housing Studies Association, York 2012
Catherine Davie
Senior Research Officer