Households have been coping remarkably well with high housing costs, but interest rate rises lurk just around the corner

How do different households cope with housing costs? Laura Gardiner summarises new research which highlights the resilience and ingenuity of modest income families in mitigating housing affordability challenges. But the eventual rise in interest rates will spell trouble for many. In London for example, even with a combination of strategies in place, modest income families are likely to have to spend at least half of their income on rent or mortgage payments, leaving little left over for other essentials.