Tenants struggle to save
Friday 24 March 2017
Private tenants go on fewer holidays, save less money and are more likely to make cutbacks than those buying their own home, new data has revealed.
Research from financial services innovator, Momentum UK, found 31 per cent of private renters have less than £100 in savings, compared to 15 per cent of people with a mortgage.
And mortgage borrowers are more than twice as likely as renters to say they have enough money, who pay around 50 per cent of their salary in rent every month.
One in five private renters say they have cut back on food in the last year to get by, compared to one in ten with mortgages; while three in five tenants currently do not have a pension, compared to just over a quarter of mortgagors.
Dominiwskc Baliszei, Momentum UK's director of consumer strategy, said: “The average private renter loses around half of their pay cheque on rent at the beginning of each month, and for those living in London, it can be even higher.
"This not only limits their ability to save, but also means they have to cut back on expenses such as gym memberships, holidays and socialising just to get by."
He said that as home ownership falls, and with more than four million UK households now renting, the number of people facing financial difficulties and seeing their living standards fall is set to grow.
He called on the government to deliver on pledges made in its housing white paper to help those who have moved into private rented accommodation, and are not used to living on a budget, with apps and online tools.
The number of renters has nearly doubled in the last ten years.
Home ownership in England fell to 62.9 per cent last year, the lowest percentage since 1985 and eight points lower than the peak in 2003.
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