Almost half of people who rent a home and are employed are just one paycheque away from losing their home as they could not pay their rent if they lost their job, according to new research.

The study from charity Shelter and YouGov found that amounts to 3m tenants in the private rented sector and it is particularly affecting working families with children. The research found 60%, or 760,000 renting families, could be just one paycheque away from losing their home. A job loss would render 550,000 of these families immediately unable to pay their rent.

Darren Rodwell, London Councils’ executive member for Housing & Planning, said: “This is the latest evidence of the massive pressures faced by renters in the private sector. We know the situation is particularly bad in London due to the capital's chronic shortage of affordable homes. That's why London boroughs are calling for more powers and resources to enable delivery of new council housing on a mass scale.

“It's also why we're calling on the government to increase the Local Housing Allowance so that private renters have more support and can afford at least 30% of local market rents.”