10:29 AM, 10th May 2023, About 5 months ago
The cost-of-living crisis is still being felt by renters around the country after research reveals that one in 20 tenants didn’t pay rent in April.
The Which? Consumer Insight Tracker highlights that 700,000 households missed either their rent or mortgage payment last month.
The research also points to soaring mortgage rates that have led to household bills jumping significantly for landlords and homeowners.
And their data found that 3.1% of mortgage holders didn’t meet their payment last month.
However, the research also shows the worrying trend that overall, there were two million households that defaulted or missed at least one rent, mortgage, loan, bill or credit card payment in April.
Which? says this trend is in line with the figures seen last year but they are higher than was recorded in April 2021 and 2020.
The most commonly missed bill was for energy, followed by council tax bills.
Rocio Concha, the director of policy and advocacy at Which?, said: “It’s very worrying that so many households are missing housing payments.
“We’d encourage anyone who’s struggling to seek free debt advice and reach out to their mortgage provider or landlord for help.”
The data also shows that 59% of respondents said they had made at least one adjustment so they could meet shopping, housing and utility bill costs.
Also, in other research from The Mortgage Lender, it found that 3.2 million adults said they had missed some form of major payment over the last two years.
This equates to 6% of people not paying their rent, mortgage or credit cards.
Four in 100 adults say they have missed multiple payments – a significant proportion of the population that has been financially squeezed during the pandemic and may have fallen into adverse credit.
Peter Beaumont, the chief executive of The Mortgage Lender, said: “The past two years have impacted many people’s jobs and salaries, putting a squeeze on household finances, and with the rising cost of living there is even greater pressure on the nation’s finances.
“This can all lead an individual to miss a regular payment which then could have a knock-on effect on their access to credit down the line.”