Renters 'at risk' as cost of living crisis continues

A report from the government’s Office for National Statistics shows that renters and mortgage holders have higher odds of experiencing financial vulnerability than those who own homes outright.

Renters have around five times the odds of experiencing financial vulnerability than someone owning their home outright, and they spend a higher proportion of their disposable income on rent (21 per cent), than mortgage holders on their mortgage (16 per cent).

Older people are more likely to own their homes outright, but the English Housing Survey shows 25.5 per cent of all social renters are retired along with 6.8 per cent of all private renters.

The data also shows 7.0 per cent of owner occupiers aged 65 to 74 are still repaying a mortgage along with 2.3 per cent of those aged over 75.

Food shopping (96 per cent), gas or electricity bills (57 per cent) the price of fuel (37 per cent) rent or mortgage costs (27 per cent) continue to be most reported reasons why cost-of-living had increased.

Helen Morrissey, an analyst at business consultancy Hargreaves Lansdown, says: “The cost-of-living crisis continues to squeeze the life out of our finances with renters particularly vulnerable to rising costs. 

“According to the data renters are around five times more likely than outright homeowners to experience a financial vulnerability though those still paying a mortgage are also at increased risk.

“Those approaching and in retirement are far more likely than younger groups to have paid off their mortgage but recent English Housing Survey data shows there are many who still have to account for these costs. Over a quarter of social renters are retired and seven per cent of owner occupiers aged between 65 and 74 are still repaying a mortgage. 

“Those with a mortgage can look forward to a time when payments end but for those who rent the costs continue and alongside already eye watering increases in food and fuel it can make life extremely difficult.

“Enormous house price increases over the years have made it hard for people to get on the housing ladder. They either get on it later, or not at all, and this has long ranging impacts for people’s financial resilience at all ages. High housing costs make it that bit harder for younger generations to save, and this includes putting away enough to give them a decent income in retirement.”

We're excited to announce that we're working on building a shiny new website for readers of Landlord Today! As part of this process, commenting on articles will be temporarily disabled. We look forward to sharing our new and improved Landlord Today website with you shortly!