40% of Working Tenants Cannot Afford To Save

40% Of Working Tenants Can't Afford To Save

According to a new study by a leading online house and flat sharing portal, 4 in 10 tenants who are renting property in the UK private rented sector (PRS) can’t afford to save

One in seven people of those surveyed by SpareRoom.co.uk said they are having to spend more than two thirds of their take-home pay on the rent

• 15% of renters said said they are their savings to make ends meet, a figure that rose to 60% for people aged under 30.
• 20% can’t see how they will be able to get on the property ladder/
• 48% of tenants aged under 30 said they still owe more than £10,000 in university fees.
• 35% of those surveyed were trying to save for a deposit to buy a house, but of those, four in 10 (20%) had saved less than £5,000.
• 48% of those surveyed said they would be happy to rent long-term if there was less pressure in the UK to own a home.

SpareRoom director Matt Hutchinson said: “Soaring living costs mean it’s a struggle for many households just to keep their heads above water each month, let alone have enough spare cash to put aside towards a deposit. What’s clear is that something has to change. House prices need to fall, mortgage lenders need to offer more assistance to first-time buyers with higher loan-to-value mortgages, and the Government has to accept there is a need for more affordable housing to purchase and affordable rental properties available privately or through housing associations.”

80% of tenants surveyed by the website said they were professional workers in employment, but 40% said the sizeable deposit they would need was stopping them getting on the property ladder, and 20% said UK house prices were still too high.

More than 2,000 people took part in the UK-wide study last month.

Legal 4 Landlords spokesman Sim Sekhon said “UK landlords with working tenants should consider taking out Rent Guarantee insurance to protect their rental income and reduce the financial pressures mounting on tenant finances. It’s a simple 2 stage process that means comprehensive Tenant Referencing is backed up by Rent Guarantee insurance providing the landlord with the best tenants and a continual rental income stream”.