The effects of affordability on stress are modelled through a probit equation. The dependent variable refers to renters under the age of 60 and includes 5,715 observations, taken from the 2015/16 EHS. The dependent variable takes a value of one if the household is in stress (as defined in the main text) and zero otherwise. Twenty-nine per cent are defined to be in stress.

The key independent variable takes a value of one if the household is paying for housing more than 25 per cent of its household gross income, net of benefits, and zero otherwise. No allowance is made for property taxes, fuel or other costs. The variable is multiplied by a dummy for the income quintile in which the household lies, which allows different effects for affordability in each quintile. The lowest quintile is omitted as the comparator, but its implied coefficient is given by row (5) in Table A2.1; for the second quintile, the total effect is row (1) + row (5) and similarly for the other quintiles. Since the coefficients are taken from a probit equation, in this form they do not have a ready interpretation; for example, they are not marginal effects. Therefore, in the main text (Table 2.1), they are shown in terms of their relative sizes.

A range of demographic, tenure and location control variables, described in the text, are also added, but not shown in Table A2.1.