One in nine renters using foodbanks

A lettings industry supplier claims one in nine renters use foodbanks.

A survey of tenants, commissioned by Zero Deposit, found that just nine per cent would describe themselves as financially comfortable.

Some 46 per cent describe their current position within the rental market as having to make ends meet, with next to no disposable income once their outgoings were accounted for.

A further 12 per cent are either financially unstable - having to borrow to cover the cost of their outgoings - or in serious financial trouble and unable to cover these costs.

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.

And 34 per cent stated that higher interest rates had contributed to an increase in their monthly outgoings, with 58 per cent having also seen the cost of their monthly rent increase in the last year.

As a result, 18 per cent have had to dip into their overdraft in order to cover the cost of their outgoings over the last year, with a further 11 per cent also having to extend their overdraft in order to get by.

One in nine also apparently stated that they have had to rely on additional support such as foodbanks.

Sam Reynolds, chief executive of Zero Deposit, says: “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 per cent in the capital and 43 per cent 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.

“Like homebuyers, they too have a sizable upfront cost to overcome in the form of a rental deposit when looking to secure a roof over their head within the rental sector. For those who can overcome this initial obstacle, the continued cost of living and the escalating cost of rent itself is putting serious pressure on their financial stability.”