Nine in 10 Londoners struggle to pay the rent as cost of living onslaught eats up tenants’ budgets
Rental cost increases are contributing to a strain on household finances for nearly nine in 10 tenants, with many facing further cutbacks should their household costs continue to increase.
86 per cent of all tenants confirmed the cost of living crisis is hitting them in their wallet, putting a further strain on Londoners’ household finances.
In fact, according to a survey commissioned by Rentd found that, since the start of the year, over half of tenants (52 per cent) had already experienced an increase in their monthly rental costs.
For the majority (53 per cent) this was manageable, with a further 28 per cent stating this increase was marginal. However, for 19 per cent, the increase in the cost of their rent was considerable and 40 per cent stated that they were already struggling financially before this rental cost increase occurred.
“The cost of living crisis is particularly concerning for tenants, many of whom would have already been struggling with the cost of renting and will now find they are being financially stretched to their limits,” said Ahmed Gamal, founder and CEO of Rentd.
“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.”
Gamal explained to Morning Wire today that “this means that a great deal of tenants may now be finding that the cost of renting in their given area is quickly becoming unaffordable.”
Utility bills
The hike in utility bills has been the primary factor behind this growing financial instability, with fuel costs and rental cost increases also ranking high.
Council tax hikes were also a source of financial stress for many, with TV and broadband and car related commitments such as insurance and tax also ranking amongst the biggest causes.
For 46 per cent, the prospect of further cost increases this year are a worry, with 59 per cent stating it would cause them to have to make further cutbacks.