Renters unable to save ANY money have trebled in 12 months with most saving ‘less than £100 each month’, research shows
RENT increases are impacting the saving power of four in 10 private tenants – leaving a third of these unable to put any cash aside.
Research of 1,250 adults who live in private rental accommodation found the number unable to save any money at all has tripled in the last 12 months from 11 per cent to 32 per cent.
Of those still saving, 62 per cent are putting aside £100 or less each month.
But 62 per cent have dipped into what savings they do have to cover living expenses at least once in the last two years.
They are also putting aside £50 less each month to offset the cost of their accommodation – as their tenancy costs have shot up by more than £100 on average.
Now, the typical tenant’s monthly expenditure on living expenses and bills is £965 per month.
While those with a rainy-day fund have an average of £3,140 to use in case of an emergency or change in circumstances.
The research was commissioned by first direct to highlight its support measures for renters, which includes consultations on money management and access to expert tenancy advice.
Claire Shaw, head of societal impact at the bank, said: “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 study also found that if faced with financial difficulties relating to their rent, 43 per cent of tenants would turn to friends and family for help.
But 20 per cent would seek support from the Citizens Advice Bureau and 16 per cent would contact their local council.
However, 64 per cent wouldn’t know what the best course of action would be if they were struggling to afford their rent.
It also emerged half of renters polled, via OnePoll, admitted it is difficult for them to know what their rights are as a tenant.
Of these, 45 per cent fear they could be tripped up because of the complexity of the law, and 43 per cent struggle to keep up with the ever-changing regulations.
For 44 per cent, they don’t know their rights because of the jargon involved, while 38 per cent believe there are a lot of myths circulating about tenant’s rights.
Claire Shaw, from first direct, added: “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.
“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.”