Poverty before and after housing costs

Proportions of people in poverty before and after housing costs (2019/20)

The difference between poverty rates before and after housing costs shows how much of an impact housing costs have on poverty.

In London, poverty rates almost double when housing costs are accounted for (increasing the poverty rate from 16% to 28%). In the rest of England, the difference is much smaller (increasing poverty rates from 17% to 21%). This shows that, compared to the rest of England, high housing costs are a much more significant driver of poverty in London.

Put another way, this means that accounting for the high housing costs in the capital leads to over one million more people being judged to be in poverty.