ONS data for cost of living crisis – 34% of renters reporting rent increases

ONS data for cost of living crisis – 34% of renters reporting rent increases

11:19 AM, 25th April 2022, About 2 years ago

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The Office for National Statistics has released its latest report using data from the Opinions and Lifestyle Survey analysing how different demographics have been affected by an increase in their cost of living from November 2021 to March 2022: Click here

The results show housing costs have also been a growing contributor with 34% of renters reporting their rent had increased in the last six months, compared with 19% of mortgagors who reported their mortgage payments had increased over this period. The difference in the responses of renters and mortgagors likely reflects a proportion of borrowers being on fixed-rate mortgages, whereas renters may be more exposed to increases in rent and rising cost burdens on landlords.

The graph below shows the percentage of adults in Great Britain reporting an increase in cost currently paying off a mortgage and/or loan, or rent, or shared ownership:

“The largest annual increase in private rental prices paid by tenants in the UK since July 2016 was seen in March 2022, at 2.4%.

Additionally, those who are currently paying off a mortgage on a Standard Variable Rate (SVR) will have likely seen an increase in their housing payments. Since November 2021, the average floating mortgage interest rate has increased by 0.2 percentage points. Despite the recent increases in the Bank Rate, the average floating mortgage interest rate is around 0.5 percentage points lower than the 2019 average.

In March 2022 (16 to 27 March 2022), among those paying off a mortgage or rent, 30% reported it very or somewhat difficult to afford rent or mortgage payments. The differences in reported increases between rents and mortgage payments are reflected in those reporting it either somewhat or very difficult to afford housing costs, with renters (39%) more likely to report some difficulty than mortgagors (21%).

Of those currently paying rent, 6% reported being behind on rent payments in March 2022 (16 to 27 March 2022). Arrears are consistently higher in the social rented sector than the private rented sector and owner occupiers. Data from the OPN show those living in the most deprived areas accounted for the largest share of adults who were behind on housing payments.”

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