The UK housing crisis: Understanding the pressure and finding support

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Did you know that, according to Shelter, 67% of people in England have experienced some form of housing pressure in the past year?

Whether it’s struggling to pay the rent, keeping up with mortgage payments, or worrying about eviction, financial stability is becoming harder to maintain.

Are you struggling with your mortgage?

The average household now spends £1,428 a month on their mortgage[1], which can take up a significant portion of their income.

UK Finance found that at the end of 2024, over 92,000 homeowners were behind on their mortgage payments, putting them at risk of repossession.

As a mortgage is a secured debt linked to your home, missing payments could lead to your property being repossessed.

A secured debt is when you have an asset, like a property or vehicle, that is used as security on the loan. If you fall behind with payments, this means the creditor can legally sell that asset to repay your debt.

This is why mortgage debt is considered a priority debt, and you should act quickly if you’re struggling with payments.

Are you struggling with your rent?

Renters are also feeling the squeeze. The average household spends £1,271 a month on rent[2], around 35% of their income[3].

According to The Guardian, nearly two-thirds of working renters struggle to keep up with payments, and many are at risk of eviction.

Unlike mortgages, rent isn’t secured against an asset, which makes it what’s known as an unsecured debt.

If you don’t repay an unsecured debt, the lender can take legal action against you (like issuing a court order) to recover the money you owe, but they can’t directly repossess your property or assets unless they secure a charging order against it. This could result in court proceedings and eviction notices, making rent arrears another priority debt to address as soon as possible.

What happens if I miss a payment?

Missing a mortgage or rent payment can have serious consequences, so it’s important to act quickly:

Late fees & increased costs

Your lender or landlord may charge late fees, adding to what you owe.
Landlords can charge a late fee if rent is overdue by 14 days or more[4].
Lenders often charge a 4-5% late fee[5], but this varies. There’s usually a grace period of around 15 days before fees apply[6].

Impact on your credit score

Missed payments can lower your credit score, making it harder to borrow money in the future.
Nearly a third of people in the UK have a poor credit score, with 24% paying higher interest rates and 23% struggling to get a new credit card[7].

Legal action

Persistent non-payment could lead to court action.
In late 2024, over 1,000 homes were repossessed due to mortgage arrears, a 12% increase from the previous quarter[8].
The Independent stated more than 15,600 renters are expected to be evicted by bailiffs in the first half of 2025.

Increased financial pressure

The longer payments are missed, the harder it can be to catch up, leading to greater financial strain.

What should I do if I’ve missed a payment?

If you miss a rent or mortgage payment, don’t panic – there are steps you can take to prevent things from getting worse:

Speak to your lender or landlord – Let them know what’s happening as soon as possible. Many will be open to discussing payment plans or temporary solutions.
Check your budget – See if you can make a partial payment and identify areas where you can cut back to free up money for housing costs.
Seek professional advice – A free debt advice provider, like PayPlan, can help you explore your options, from financial support schemes to debt management plans.

Finding support

If you’re experiencing housing pressure, you’re not alone. Help is available:

Housing charities – Organisations like Shelter advise and support those facing housing difficulties.
Government support – You may be eligible for housing benefits or mortgage support schemes.
Debt advice services – Charities and financial organisations like PayPlan offer free, confidential support.
Local council assistance – Councils may offer emergency help or discretionary housing payments if you’re at risk of homelessness.
Budgeting tools – Use our BudgetSmart tool to see how to increase your income or reduce expenses to prioritise housing costs.