London tenants turn to pawnbrokers

Research commissioned by London’s largest housing associations and conducted by researchers at the University of York found that 16% of survey respondents had used one or more of these services, as well as rent-to-own shops, between 2013 and 2014.

The survey of 560 tenants of the G15 housing associations forms part of a second report of Real London Lives – a three-year programme of research following the lives of working-age social tenants.

Authors of the report, which has been seen by Inside Housing, said the randomly picked, 560-strong sample size is representative of the demographics of the UK.

According to the study, 8% of respondents had used a pawnbroker between 2013 and 2014. Pawnbrokers were used mainly to pay for basic household needs, including food and to pay bills.

Lone parents were more likely to have used food banks, payday loan companies, pawnbrokers and rent-to-own shops, with 23% of these respondents having used one or more of this types of service. Sick and disabled residents were also more likely to have used these facilities.

The report said those in rent arrears were more likely to have used one of these services, with 35% of those owing rent deemed ‘financially stretched’.

Researchers also found that the level of unemployment among the survey respondents dropped from 21% in 2013 to 12% in 2014. However, the percentage of respondents who were employed reduced from 53% to 51%.

Those moving off an unemployed status mostly became long-term sick or disabled, were looking after family or had become full-time carers, researchers said.