11:20 AM, 20th September 2022, About 2 weeks ago 1
Faced with rising bills, 1 in 3 tenants say they would consider cancelling their energy bill payments, a survey reveals.
The findings from online lettings agency Mashroom have surveyed 1,000 renters to find out how the rising cost of energy is affecting them.
They found that the energy price cap increase is a major concern for tenants, with around 95% stating they were concerned about affordability in the future.
Also, 37% of renters can currently afford their energy bills, but noted that they were concerned about the cost when considering future price hikes.
Over 40% also voiced their concern and said they were unlikely to afford the future increases.
And 18% of renters currently cannot afford their energy bills, and October’s rise is likely to push them further into fuel poverty –
Just 5% can afford their energy bills and are not concerned about the future price cap rises.
Alongside a rise in energy bills, tenants have also seen an increase in their rent over the last 12 months.
That could be down to increases in mortgage repayments following the interest base rate hikes and rising costs in goods and services for maintenance.
However, 41% of private tenants stated they had not seen a change to their rent in the last 12 months and 45% said they had seen an increase but could still afford their repayments.
Only 14% had seen an increase in their rent and were struggling to afford the payments to their landlord.
The survey suggests that renters aged between 25 and 34 are most likely to cancel their direct debit payments for their energy bills with 39% saying they would consider cancelling their payments, and 44% in the same age group said they would continue paying for their energy – because cancelling payment is ‘far too risky’
Renters over the age of 54 are least likely to stop paying their energy bills, with 56% stating that the risks are too great to cancel their direct debits.
Adam Male, Mashroom’s chief revenue officer, said: “I think we’re likely to see households still struggle, particularly as we go into the winter season when we use more energy to heat our homes.
“The government needs to continue to look at ways in which to support the most vulnerable and lower income households, so we don’t have the same issue on an annual basis and more people slip into fuel poverty in the colder months.”