New research has found that 32% of private tenants are unable to save any money at all due to rising living costs, with 62% of these dipping into savings to cover expenses
A study involving 1,250 adults renting privately has discovered that the number who can’t stash away any savings has skyrocketed from 11% to a whopping 32% over the past year.
Even among those managing to save, 62% are squirrelling away £100 or less monthly. Moreover, a concerning 62% have raided their savings to manage living costs at least once in the past couple of years.
Tenants are also saving £50 less each month to cope with rent increases averaging over £100. Currently, the average tenant shells out £965 monthly on bills and living expenses.
Those with emergency funds have, on average, £3,140 tucked away for a rainy day or unexpected changes.
This eye-opening research was carried out by first direct, which is shining a light on its initiatives to aid renters, including money management guidance and expert tenancy advice.
Claire Shaw, head of societal impact at the bank, commented: “We know that renters are impacted by rising costs – with four in 10 seeing a recent increase in rent.”
“Many more will see an increase on the horizon when their tenancy is up for renewal. We want to help tenants by supporting them build up their financial resilience, while balancing an increase in rent and other costs.”
The research also uncovered that 43% of tenants, when faced with difficulties paying their rent, would rely on friends and family. Interestingly though, 20% would seek guidance from the Citizens Advice Bureau, and even 16% would approach their local council.
Shockingly though, 64% confessed they wouldn’t know the best course of action if they found themselves unable to pay their rent.
The OnePoll study revealed that 50% of those renting admitted it is a challenge to understand their tenant rights. Out of these, 45% felt that legal complexities could trip them up and 43% struggled to keep up with ever-changing regulations.
Regarding this matter, 44% were in the dark about their rights because of the intricate jargon involved, while 38% believed that numerous myths were circulating about tenant’s rights.
Claire Shaw from first direct emphasised: “Even though many renters have good relationships with their landlord, it’s also important to know where to turn to for help, when it’s needed.”
She further added, “This is why we are so proud to provide access to a range of support measures to help renters, and that we’re able to signpost to free, expert housing advice and support through our charity partner, Shelter.”
