Rent rises start to ease – but renters still worry

Rent rises start to ease – but renters still worry

0:06 AM, 10th April 2024, About 3 months ago 2

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Tenants are experiencing some relief as the rate of rent rises slows down significantly, new data from Barclays reveals.

The bank says that renters spent just 1.8% more on rent last month than in March last year.

It has analysed millions of its customers’ current accounts and found the 1.8% extra being spent on mortgages and rent is in stark contrast to the peak of 12.2% recorded in June 2023.

However, while the overall rise in housing costs is easing, some consumers are still feeling the strain.

One in six (16%) – including tenants – are unsure about meeting their housing payments, and 18% of renters and homeowners are adjusting their spending habits to cope.

‘Spending is still reeling from last year’s spike in housing costs’

The bank’s head of savings and mortgages, Mark Arnold, said: “Non-essential spending is still reeling from last year’s spike in housing costs, which caused both homeowners and renters to cut back while looking for additional sources of income – such as delaying renovations and renting out spare rooms.

“However, there are reasons to be optimistic – our data shows that housing costs are stabilising, the inflationary tide is easing, and interest rates are predicted to fall over the coming months, all of which should translate into increased consumer confidence and spending.”

The report also highlights that the rental market continues to be a challenge with more than a fifth (22%) of renters saying there’s too much competition for rental properties.

The tenants also say that the level of competition means there is less value for their money.

Homeowners have started renting out a room

To help meet their bills, 3% of homeowners have started renting out a room in their home in the past 12 months.

This figure rises to 12% for homeowners in London.

And the impact on non-essential spending has seen households cutting back on items like DIY and electronics, which dropped by 5.2% in March.

Also, 16% of people have postponed home renovations due to financial pressures.

However, consumer confidence in general household finances remained steady last month at 67%.


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Comments

Cider Drinker

8:20 AM, 10th April 2024, About 3 months ago

Meanwhile, the mortgage rate rose from 4.5% last March to 5.25% this March.

For somebody with a mortgage, their monthly payments will have increased by 7.8%. Much more if they came off fixed rate products and needed to secure a new deal.

It’s not just renters that are suffering with the cost of living crisis.

Fed Up Landlord

10:13 AM, 10th April 2024, About 3 months ago

With Polly Bleat and Dammy Claw banging the lefty anti- landlord drum - same old same old- then it's going to get worse for renters. But they just can't see it....or can they...

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