A new survey by HomeLet and Dataloft shows that of 12,000 tenants questioned, over three quarters are worried about the cost of living crisis impacting on their ability to pay rent.
Just 11 per cent feel that the cost-of-living crisis will not impact them.
Those who share a rental property are the most concerned about paying their rent (85 per cent), compared with couples (75 per cent), single people (78 per cent) and families (79 per cent).
The data also reveals that one in four renters rank the potential inability to pay rent due to the cost-of-living crisis as their top concern in the next year. This concern is closely followed by worries about the prospect of their landlord increasing rent prices, with one in five renters ranking this as their top concern.
The average renter loses around a third of their monthly salary (30.6 per cent) on their rental payments, ranging from 22.7 per cent in the North East to 34.9 per cent in London.
HomeLet’s chief executive Andy Halstead says: “Tenants are facing increasing pressures on all of their outgoings. Landlords know the pressure on tenants, but many landlords have to increase the rent because the cost they face is growing.
“It’s concerning that so many tenants are acutely affected by their ability to pay their rent, and we’re seeing increasing demand for insurance that protects rental payments.
“The rental market plays a critical role in satisfying the UK’s housing needs; there simply isn’t enough housing stock at the moment. Despite the pressures, property can be an excellent long-term investment, but we have seen some landlords choosing to exit the market, which only causes further strain on stock levels.
“The government’s commitment to legislation in the market through the Renters’ Reform Bill will provide the most significant change to rental law in a generation. However, it needs to strike the right balance; otherwise, we could see costs go up further for tenants at a time when the cost-of-living crisis worsens.”
And Sandra Jones – managing director of Dataloft – adds: “This is one area where I believe the institutional rental sector (Build to Rent) outperforms the private rental sector. Providers understand the importance of consistently managing customer expectations.
“They use their scale and resources to negotiate with utility suppliers, offering greater security and cost predictability. Build-to-Rent providers invest continuously in ways to improve the renter experience. Understanding what is on the renter’s mind is key to that and right now, it is the rising cost-of-living.
“Whilst this kind of customer service is an acknowledged piece of the BTR operational model, there’s an opportunity for managing agents to offer a similar level of professional management that puts relationship at the heart of the landlord/tenant interaction. With costs and concerns rising, this is a time when all renters will value a professional and engaged relationship with their landlord.”
