Some 10% of tenants find their rent ‘barely manageable’ or ‘unaffordable’, while 50% have seen their rent increase in the past year by an average £100.
This is according to tenant research carried out by mortgage market specialist Pegasus Insight which also shows a further 33% report that their rent stretches their budget.
Meanwhile 46% of tenants say their rent is manageable and they can afford it comfortably, while 11% have plenty of room in their budget and find their rent ‘very affordable’.
In the last 12 months, 40% of renters claim they have had to choose between paying their rent and other essential expenses, 29% occasionally and 12% regularly.
Younger people are more likely to count among the 10% of tenants who have missed a mortgage payment in the last year (13%), along with those who say they have been ‘hit hard’ by the cost-of-living crisis (20%). The typical arrears period was two months.
The data from Pegasus reveals that half of tenants have seen their rent rise in the past 12 months, while only 1% have seen a fall. Those renting through a letting agent are more likely to have seen an increase (61%), compared to tenants renting directly from their landlord (54%). The typical increase was 14%, which equates to an average of £100 extra a month. The predominant reason given for the increase was ‘linked to inflation’ (39%).
Despite this, 81% of tenants express satisfaction that their rent represents value for money – 35% say their rent offers ‘average’ value for money, 29% ‘quite good’ and 17% ‘very good’ value for money. Only 14% say their rent offers ‘quite poor’ and 5% ‘very poor’ value for money.
Commenting on the numbers Pegasus managing director Mark Long said: “The 10% who are struggling may need landlord forbearance – the figures suggest that many tenants given a little breathing space do indeed catch up on missed payments relatively quickly. This may give some comfort those landlords concerned about the Renter’s Rights Bill, which will lengthen the period between non-payment of rent and the potential commencement of the eviction process from two months to three.”
He added: “But overall, this research serves to illustrate the resilience of tenants in the private rented sector (PRS), with the vast majority keeping up their repayments, despite half experiencing chunky increases in rent over the past year. What’s more, despite these record rises, the fact that 81% are still content their rent represents value for money strikes a resoundingly positive note.”
