Cap rents for key workers, says campaign group
2 years ago | 26 comments
Renters face financial hardship and food insecurity, survey reveals
8:53 AM, 23rd February 2024, 2 years ago
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Only 9% of tenants in the UK say they are financially comfortable, while 59% said they had trouble paying their bills and expenses due to the high cost of living, a survey reveals.
The findings from Zero Deposit also found that nearly half (46%) of renters said they had little, or no money left after paying their rent and other outgoings.
Also, one in 10 renters (11%) had to use food banks to survive, while 12% said they were either financially unstable or in serious financial trouble.
Many renters say they also had to resort to borrowing from friends, family, overdrafts, credit cards, or loans to cope with their financial situation.
‘Facing a far more desperate situation in the current climate’
The firm’s chief executive, Sam Reynolds, said: “The nation’s renters are facing a far more desperate situation in the current climate than homebuyers, who have to deal with the challenge of saving for a mortgage deposit and the rising cost of monthly mortgage repayments following a spike in interest rates.
“Rent as a proportion of total salary is as high as 53% in the capital and 43% across the UK as a whole.
“This is clearly unsustainable.”
He added: “The Government risks sleepwalking through these issues with no meaningful progress on home building and incentives for landlords to engage in the sector with optimism.”
Main reason for the renters’ financial insecurity
The survey also revealed that the main reason for the renters’ financial insecurity was the continued high cost of living, followed by the cost of their rent and bills, and the fees associated with overdrafts and other borrowing.
More than a third (34%) said that higher interest rates had increased their monthly outgoings, while 58% said that their rent had gone up in the last year.
As a result, 18% had to use their overdraft to cover their outgoings in the last year, while 11% had to increase their overdraft limit.
A third (34%) had to borrow money from friends or family, while 23% had to take out a credit card and 15% had to take out additional loans.
One in 10 (11%) also said that they had to rely on food banks or other forms of assistance.
Tags:
Cost of living, food banks, Government Response to Housing Crisis, High Cost of Living Impact, Rent, Rent as Salary Proportion UK, Rental Affordability Crisis, Tenant Food Insecurity UK, UK, UK Renters Financial Hardship, Zero Deposit, Zero Deposit Renters Survey
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Member Since March 2023 - Comments: 1506
9:59 AM, 23rd February 2024, About 2 years ago
As long as renters prioritise on paying the rent and then food then I am OK with that
Member Since June 2022 - Comments: 11
11:02 AM, 23rd February 2024, About 2 years ago
I get so frustrated by this argument.
It is without doubt that many families with low incomes will genuinely suffer with increasing costs and I have no issue at all with these people receiving an extra help.
However when saying ‘I can’t afford’ one must consider what is really meant when considering ‘affordability’.
I have viewed many tv news interviews with people complaining that their costs including rent are increasing, and they are forced into ‘having’ to use food banks etc to survive. Yet some have no issue at all pulling up to the food bank dressed in designer clothing, waving around the latest iPhone and filling the boot of their BMW.
So my point is, ii can often be about how one chooses to spend and not always the ability to spend.
And one final point – if the rents in London are so high and unaffordable – move somewhere else; or if you choose to stay, stop complaining – your choice.
Member Since March 2022 - Comments: 363
12:07 PM, 23rd February 2024, About 2 years ago
I wonder how many non-tenants in the UK would say they are financially comfortable, and what percentage would say they had trouble paying their bills and expenses due to the high cost of living? Very similar numbers I imagine.
Member Since November 2016 - Comments: 227
12:49 PM, 23rd February 2024, About 2 years ago
42% Have had no rent increase in the last year.
Some kind landlords out there.
Member Since December 2023 - Comments: 1573
10:15 PM, 23rd February 2024, About 2 years ago
Homeowners are struggling too. Especially those that bought in recent years.