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The Analysis Comment
Taking the fi nancial strain
Cost of living increase puts fi nancial strain on 86% of rental households
Ahmed Gamal Founder and chief executive, Rentd
Our research has revealed that rental cost increases have contributed to a strain on household fi nances 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 we commissioned found that, since the start of the year, over half of tenants (52%) had already experienced an increase in their monthly rental costs.
Manageable 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 fi nancially before this rental cost increase occurred. In fact, the increasing cost of living has put
a further strain on household fi nances for 86% of tenants.
Hike The hike in utility bills has been the primary factor behind this growing fi nancial instability, with fuel costs and rental cost increases also ranking high. Council tax hikes were also a source of
fi nancial 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. 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 fi nd they are being fi nancially stretched to their limits.
June 2022
www.CCRMagazine.com 11
concerning for the nation’s tenants, many of whom would have already been
The cost of living crisis is particularly
struggling with the cost of renting and will now fi nd they are being fi nancially 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 fi nding that the cost of renting in their given area is quickly becoming unaff ordable. When committing to a rental property, it is important to consider that much like a variable rate mortgage payment, the cost of your rent is subject to change. So it is vital to leave yourself some room
within your monthly budget to account for this increase, otherwise you may fi nd yourself looking for a more aff ordable property or location. CCR
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