It’s a tough time to be a renter in the UK. Prices are soaring, and many are struggling to make ends meet. The cost-of-living crisis is hitting renters hard. Rent prices are up 8.9% in the last year, with tenants paying over £100 more per month on average. And it’s only getting worse.

Here’s the stark reality:

• One in three renters are relying on benefits: That’s 30% of renters turning to the state for help, compared to just 12% of homeowners.
• Renters are facing financial instability: 37% of renters say they’re more financially unstable than ever before, compared to 24% of homeowners.
• Side hustles are becoming the norm: 32% of renters are taking on extra work to make ends meet, compared to just 22% of homeowners.
• Moving back in with parents: 13% of renters are having to move back in with their families, and that figure jumps to a staggering 25% for younger renters aged 18 to 34.

Debt is Mounting

It’s not just about relying on benefits, many renters are going into debt to keep a roof over their heads.

• Borrowing to pay bills: A fifth (19%) of renters are taking out loans to cover basic expenses, compared to just 11% of homeowners.
• Credit card usage is soaring: Over 20% of renters have opened a new credit card in the last year, putting them at risk of spiraling debt.

This is a worrying trend, as it could lead to a wave of renters struggling to manage their debt. The UK’s total credit card bill has risen by a staggering £4.5 billion in the last 12 months.

What This Means for Landlords

This is a wake-up call for landlords. If renters are struggling to pay their rent, you could be facing empty properties and a drop in rental income.

Here’s what you need to consider:

• Are you offering competitive rental rates? Renters are looking for good value for money, so make sure your prices are in line with the market.
• Are you providing a good living environment? Renters want homes that are well-maintained and comfortable.
• Are you being understanding about financial difficulties? Renters may need some support during this challenging time.

The housing market is changing, and landlords need to adapt. By understanding the financial pressures renters are facing, you can create a better relationship with your tenants and safeguard your own investments.