Renters are still financially squeezed – FCA

New research by the Financial Conduct Authority (FCA) suggests there has been an improvement in the financial well-being of Brits, though challenges remain, particularly for renters.

The FCA analysis reveals a significant burden on renters who are disproportionately affected compared to other demographics.

Its survey shows that the percentage of tenants struggling financially has dipped slightly – from 59% in January 2023 to 50% this year.

And while 7.4 million people faced difficulty paying bills in January, the FCA says, this is down from 10.9 million a year earlier.

‘People are still struggling with their bills’

The FCA’s executive director of consumers and competition, Sheldon Mills, said: “Our research shows many people are still struggling with their bills, though it is encouraging to see some benefitting from the help that’s available.

Despite the challenges, the FCA found that nearly half of those who sought help from lenders or debt charities improved their situation.

However, the FCA emphasised the importance of seeking help early, as many of those who are struggling with bills – that’s two in five respondents – avoid contacting their lenders.

The body is urging those in financial difficulty to seek assistance and has announced stronger borrower protections.

These protections include making permanent pandemic-era support measures for borrowers facing hardship, alongside additional targeted changes to benefit consumers.

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