Research by London rental platform, Rentd, has revealed that rental cost increases have contributed to a strain on household finances for 86% of UK tenants, with many facing further cutbacks should their household costs continue to increase.
The survey of over 2,000 UK tenants commissioned by Rentd found that, since the start of the year, over half of tenants (52%) had already experienced an increase in their monthly rental costs.
For the majority (53%) this was manageable, with a further 28% stating this increase was marginal. However, for 19%, the increase in the cost of their rent was considerable and 40% stated that they were already struggling financially before this rental cost increase occurred.
In fact, the increasing cost of living has put a further strain on household finances for 86% of tenants.
The hike in utility bills has been the primary factor behind this growing financial instability, with fuel costs and rental cost increases also ranking high.
Council tax hikes were also a source of financial stress for many, with TV and broadband and car related commitments such as insurance and tax also ranking amongst the biggest causes.
For 46%, the prospect of further cost increases this year are a worry, with 59% stating it would cause them to have to make further cutbacks.
Founder and CEO of Rentd, Ahmed Gamal, commented: “The cost of living crisis is particularly concerning for the nation’s tenants, many of whom would have already been struggling with the cost of renting and will now find they are being financially stretched to their limits.
“During the pandemic, we saw rental values drop across a great deal of the market, but with normality returning this year, they are once again starting to climb. This means that a great deal of tenants may now be finding that the cost of renting in their given area is quickly becoming unaffordable.
“When committing to a rental property, it’s important to consider that much like a variable rate mortgage payment, the cost of your rent is subject to change. So it’s vital to leave yourself some room within your monthly budget to account for this increase, otherwise you may find yourself looking for a more affordable property or location.”
Survey of 2,172 UK tenants commissioned by ProperPR on behalf of Rentd via consumer research platform, FindOutNow (06/06/2022).