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Rapidly rising rents have added to the squeeze on tenants’ finances – with three-quarters (75%) of those who experienced a rent increase in the past year saying this was the most significant contributor to their increased living costs, according to a new survey.
The poll of 1,250 adults living in private rental accommodation across the UK, carried out on behalf of First Direct, also found that just under half (45%) of renters have less than £500 in savings, with 18% having no money saved at all.
More than half (60%) of renters are concerned about bills going up as well as rent increases (52%), while 48% are also worried about receiving an unexpected bill.
In addition, nearly two thirds (64%) of the private renters surveyed say they wouldn’t know what to do if they weren’t able to cover their rent payments for whatever reason.
Renters are feeling the pinch...
“We know that renters are feeling the pinch at the moment, with lots of people seeing a large increase in rental payments,” says Claire Shaw, head of societal impact at First Direct – which says it offers a range of support to renters.
This includes money coaches as well as signposting to free, expert housing advice and support through its charity partner, Shelter.
So, how can squeezed renters help safeguard themselves from sudden cost rises or bills, and where can they turn if they find themselves in a really tight spot? Here are some tips from First Direct…
1. Look at help with building financial resilience
Some banks offer interest-free overdraft buffers up to a certain level, which may help if you get an unexpected bill that you’ll struggle to pay otherwise. For those who are able to save some money, it’s also worth looking for competitive savings rates.2. Grow your nest egg slowly but surely
In the face of rising living costs, saving money can be a real challenge for many renters. But if you’re able to, it’s a good idea to try and start a saving habit by putting aside an affordable amount monthly – even if it’s only a small amount each month. Some products are designed to give a really good return on regular monthly savings deposits, and knowing you are working on your savings will help bring peace of mind.
3. Know where to turn to for help in a crisis
If you find yourself in an emergency situation, for example at risk of eviction, facing homelessness or at risk of abuse or harm in your home, you can contact Shelter for free guidance.
4. Understand your tenancy rights
For anyone having issues with their tenancy or their landlord, it’s also key to understand where to turn to understand your renting rights.
Online resources to help renters understand the law and their tenancy agreement include those on Shelter’s private renting advice pages, and on the gov.uk website.
Communicating with your landlord is also vital if you are struggling, so it’s a good idea to get in touch and let them know sooner rather than later. They may also help to ease some of your concerns.
