Over a third of all private tenants are finding it difficult to afford their rent with many missing out on food, heating and clothing to meet rising costs, latest research from the TDS Charitable Foundation reveals.
Some 35% of renters said they were finding it difficult or very difficult to afford their rent with over half (56%) not in in work due to long-term sickness or disability having the same problems. Just under half of students (45%) said they were struggling to afford their rent and a similar amount (43%) for those in receipt of benefits.
Last year just 32% reported problems paying their rent but since then average rents have increased 7%.
Most tenants are also struggling to afford household essentials with over half (55%) saying they have had to cut back on expenses such as food, heating, and clothing to meet costs. This increased to (seven out of 10 (72%) amongst single parent renters and six out of 10 (62%) for all rented households with children living in them.
The research is backed by latest findings from The Deposit Protection Service (The DPS) which also found tenants cutting down on food and heating to meet higher rents.
The DPS found seven out of 10 (72%) of moving tenants were now paying higher rents on new properties with a large proportion of tenants cutting back on spending on food and heating to meet their costs.
Almost three quarters (73%) of those tenants who had moved to more expensive rental properties said that they’ve been forced to reduce expenditure on essentials like food and heating to meet their new payments.
WORRYING PICTURE
Dr Jennifer Harris, Head of Policy and Research at TDS Group, says: “Our data paints a worrying picture of the pressures many renters are now under and has implications for landlords with tenants in arrears.”
She adds: “Whilst all the main parties have focused on ending section 21, this will not address the fundamental challenges many tenants face in affording their rents.
“The next Government needs to avoid the temptation to reach for simple solutions. This means addressing the gap between supply and demand in the rental market, reducing costs on the sector and providing certainty about housing benefit levels to enable tenants and landlords to plan for the medium to long term.”
COST PRESSURES
Matt Trevett, Managing Director at The DPS, adds: “Rent reviews allow landlords or letting agents to adjust the rate to reflect any new cost pressures. The tenancy agreement should set out when these can take place.
“We’d encourage tenants to be open with prospective landlords about what they can reasonably afford to pay and for landlords to explain the rationale behind any increased rents at the outset.
“An open dialogue is crucial to preventing misunderstandings and can help avoid disputes.”
