New Report: No Access, No Way Out

Key findings summary  

An inaccessible, unaffordable market  

Securing PRS accommodation for people moving on from homelessness has become much more difficult in the last two years, resulting in people experiencing homelessness for longer. This reduced availability, particularly in the lower-priced end of the PRS market, is due to landlords who previously focused on renting to people on benefits shifting to a different section of the market.  

Alongside falling supply of low-cost PRS, soaring rent prices and lack of financial resources to cover deposits and advance rent payments leaves people leaving homelessness excluded from the rental market. 

“So, I think that it’s been getting worse and worse gradually. It’s just hit a particularly shocking point in the last year or two because I think the demand has increased so significantly.” Anonymous  

Systemic worklessness traps   

The high costs of PRS accommodation means that people are trapped in worklessness because foregoing the housing element of Universal Credit payments, or legacy housing benefit payments, to work on a low and potentially variable income makes rent unaffordable. This creates a cycle of poverty, as people find it difficult to afford rent when transitioning into work. 

Adding to the unemployment trap are growing cases of landlords preferring to rent to non-employed tenants, as they receive a guaranteed income through the tenant's benefit payments. 

“If you go for a job, it’s gonna completely change your move-on plan, and things that are affordable.’ And he was like, ‘Oh, gosh, I thought by getting a job it was a good thing.’ […] It’s just heartbreaking. People want to work. Often, people want to work because they need routine. You have purpose, but you’re sort of discouraging that.”  Service Manager, St Mungo’s 

Feelings of desperation and hopelessness   

For individuals seeking move-on from homelessness services, the experience of living in services for long periods with no access to move-on private rented housing creates a feeling of desperation and hopelessness. In some cases, this leads to clients abandoning the services and at risk of rough sleeping. Low-quality offers and experiences of rejection people experience when seeking PRS accommodation can also be retraumatising, causing people to feel hopeless. 

“One client who had definitely been on [many, many] viewings, he’s abandoned [the service]. I think that’s the worst situation because they might end up rough sleeping again, and then keep going around services.” - Anonymous service and support organisation 

 Competition for viewings 

Mass viewings were reported to be a major problem for people seeking a PRS route out of homelessness. Not only do mass viewings create a negative experience for people who do not secure the accommodation, but they also give agents the opportunity to select tenants based on discriminative and subjective grounds. 

“I took video evidence because it was a one-bed studio flat on the North Circular. I recorded it to show the rat race we have to deal with, about 45 people in the queue. People give each other wrong directions to increase their chances – I’ve seen that happen.” – Senior Manager at Depaul UK.  

 Increased use of landlord incentives  

To address the increasing demand for PRS accommodation, landlords are increasingly being encouraged to accommodate people experiencing homelessness through cash incentives rather than rent deposits and/or rent in advance. This situation has created a competitive dynamic between homelessness agencies and local authorities.  

As a result, some homelessness agencies may be disadvantaged if they do not provide incentives or offer only small ones, as local authorities often have greater resources to offer. However, the level of support provided by different local authorities varies widely, ranging from substantial incentives to no support for individuals who are not considered to be in priority need. 

“If we had to pay a thousand pounds for every person we placed there’s no way we could place 150 people – that’s £150,000 worth of incentives that we’d have to fundraise for. That’s not feasible for most charities.”  Senior Manager, The Passage 

 Unethical and illegal landlord practices  

Cases of alarming landlord practices were rife in both client and staff of services interviewees, including concerns about racial profiling and discrimination, including asking for tenants with fluent English. Other concerning practices involved expecting clients on disability benefits to pay a higher level of rent and requesting tenants’ Universal Credit logins to set up direct payments. 

“There’s also more shady stuff; we’re seeing ... agencies demanding [Universal Credit] logins before they will give over a key.” Anonymous