17 Jun 2022
The pressure of the constant surge in the cost of living for UK rental households are prevalent, and the effects are starting to show.
With recent research done by London rental platform, Rentd, it has been disclosed that rental cost increases have contributed to a strain on household finances for 86% of UK tenants, with many facing further cutbacks should their household costs continue to rise.
The cost of living
The survey spanned across 2,000 UK tenants commissioned by Rentd found that, since the beginning of the year, over half of tenants (52%) had already felt the increase in their monthly rental costs.
This was manageable for the majority (53%) with a further 28% stating this rise was marginal at the very least. However, for 19%, the increase in the cost of their rent was considerable and 40% declared that they were already struggling financially prior to this rental cost increase.
The fact now stands that the cost of living has put a further strain on household finances for 86% of tenants.
The catalysts of these spikes
The primary factor behind this growing financial instability within the nation is largely due to the hike in utility bills, with fuel costs and rental costs surges also ranking high.
Another source of financial stress for many has been council tax hikes, with TV, broadband and car-related commitments such as tax and insurance also topping the list.
For 46%, the prospect of further cost increases this year are a big worry, with 59% stating it would result in further cutbacks for them.
Founder and chief executive officer of Rentd, Ahmed Gamal, commented on the situation and said: “The cost-of-living crisis is particularly concerning for the nation’s tenants, many of whom would have already been struggling with the cost of renting and will now find they are being financially stretched to their limits.”
“During the pandemic, we saw rental values drop across a great deal of the market, but with normality returning this year, they are once again starting to climb. This means that a great deal of tenants may now be finding that the cost of renting in their given area is quickly becoming unaffordable.”
Gamal concluded: “When committing to a rental property, it’s important to consider that much like a variable rate mortgage payment, the cost of your rent is subject to change. So, it’s vital to leave yourself some room within your monthly budget to account for this increase, otherwise, you may find yourself looking for a more affordable property or location.”
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