Some tenants are severely struggling in the current climate, as one in 10 (11%) have had to resort to food banks to get by, research from Zero Deposit has revealed.
Less than that proportion (9%) describe themselves as financially comfortable, with nearly half (46%) having no disposable income once their outgoings are accounted for.
When asked what the key reason was with respect to their financial insecurity, the continued high cost of living ranked top, with the cost of their core outgoings such as rent and bills also ranking as one of the biggest factors, followed by overdraft and other borrowing fees.
Sam Reynolds, chief executive of Zero Deposit, said: “While much has been made about the obstacle of accumulating a mortgage deposit and the increased cost of monthly mortgage repayments following a spike in interest rates, the nation’s renters are facing a far more desperate situation in the current climate.
“Rent as a proportion of total salary are as high as 53% in the capital and 43% across the UK as a whole. This is clearly unsustainable. The government risks sleepwalking through these issues with no meaningful progress on home building and incentives for landlords to engage in the sector with optimism.”
A third (34%) have had to rely on friends or family to borrow money, while almost a quarter (23%) said that they have had to take out a credit card to help cover the cost of living, with 15% also having to resort to additional loans.
