Many people on low incomes renting privately are being forced to live in slum-like conditions and struggle to find a decent, affordable place to live, according to a new report by Shelter.

The report, 'A route to homelessness?', written by Julie Rugg, examines the problems people on low incomes living in Private Rented Sectors (PRS) face, particularly when their tenancies end - which resulted in almost 10,000 households becoming homeless in 2007.

Evidence from tenants interviewed for the report shows many people at the bottom end of the sector experience high levels of disrepair and damp, affecting their health and safety. Tenants are often left in a catch-22 situation – forced to accept terrible conditions because they are unable to afford to move elsewhere.

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This problem is made worse by the advance rent payments and substantial deposits required by most landlords, which make it virtually impossible for those on low incomes to access good quality housing in the mainstream private rental market.

For tenants reliant on housing benefit, the situation is worse still – the majority of landlords are reluctant to rent to them due to problems with the benefits process, severely reducing their choice of decent accommodation. Landlords who are experienced in dealing with the housing benefit system and maintain their properties well are highly sought after, but there are simply not enough to meet demand.

In response to the report, Shelter's Chief Executive Adam Sampson, said: "It's a travesty that in 21st century Britain, slum renting is still in existence, with tenants enduring appalling conditions and living at the mercy of rogue landlords.

"This report highlights just how badly the private rented sector is failing its most vulnerable tenants, so its vital we make much needed improvements to the system, to ensure it provides everyone - regardless of income - with a safe and secure home."

(CD/NS)