Nearly half (46%) of UK renters have described their position within the rental market as “having to make ends meet”, according to the latest research by Zero Deposit.
It is estimated that one-in-10 renters (11%) are having to resort to food banks to get by and 12% are having to borrow to cover the cost of their outgoings or in serious financial trouble and unable to cover these costs.
The continued high cost of living was the top reason for renters’ financial insecurity, with the cost of their core outgoings, such as rent and bills, overdraft, and other borrowing fees also contributing to the problem.
Some 34% said that interest rates had contributed to a surge in their monthly outgoings, with 58% seeing their monthly rents climb in the past year.
“While much has been made about the obstacle of accumulating a mortgage deposit and the increased cost of monthly mortgage repayments following a spike in interest rates, the nation’s renters are facing a far more desperate situation in the current climate,” commented Sam Reynolds, CEO at Zero Deposit.
“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.
“Like homebuyers, they too have a sizable upfront cost to overcome in the form of a rental deposit when looking to secure a roof over their head within the rental sector.
“For those who can overcome this initial obstacle, the continued cost of living and the escalating cost of rent itself is putting serious pressure on their financial stability.
“So much so that many are having to rely on friends and family, overdrafts, and worryingly additional loans and credit cards to get by and, in the worst instances, the help of organised aid such as food banks.”
Sam described the situation as “an endless loop of financial stress” that showed no signs of abating.
