Rent increases leave a third of tenants unable to save at all, research finds
he number unable to put money away has tripled in the last 12 months, according to the study of 1,250 adults renting in the private sector.
Rent hikes are squeezing the wallets of four in 10 private tenants, with a third now unable to save any money at all.
A study involving 1,250 adults residing in privately rented homes has discovered that the proportion of those who can't save a penny has skyrocketed from 11% to a staggering 32% over the past year.
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The current average monthly outlay for tenants on living expenses and bills stands at £965.
Tenants are now saving £50 less each month due to the surge in rent, which has leapt by over £100 on average. Moreover, 62% have had to raid their savings to meet living costs at least once in the past two years.
Among those who manage to save, a mere 62% are stashing away £100 or less monthly. For those with emergency funds, the average amount tucked away is £3,140, ready for unforeseen events or changes in circumstances.
This research, conducted by first direct, aims to showcase the bank's commitment to assisting renters through its financial guidance services and expert tenancy advice.
Claire Shaw, head of societal impact at first direct, commented: "We know that renters are impacted by rising costs - with four in ten 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 survey uncovered that a staggering 43% of tenants would ask friends and family for financial help if they couldn't pay their rent, while 20% would turn to the Citizens Advice Bureau and 16% to their local council for assistance.
Alarmingly, 64% confessed they'd be at a loss about what steps to take if faced with rental affordability issues.
The research, conducted via OnePoll, also highlighted that half of the renters questioned find it tough to understand their rights as tenants. Among these, 45% are concerned about being caught out by complex laws, and 43% find it hard to keep up with changing regulations.
A significant 44% are baffled by legal jargon, and 38% feel there's a lot of misinformation about tenant rights out there.
Claire Shaw of first direct commented on the findings, saying: "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 proudly mentioned, "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."
