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Tenants cutting back on food to pay the rent claims analyst

A prominent personal finance analyst says renters in the private sector are amongst the most badly hit by the cost of living crisis. 

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, cites Office for National Statistics figures showing 16m people having cut back on food and essentials, including 51 per cent of renters.

She says: “These are truly desperate times, and millions of people have been forced to take desperate measures. While all of us are facing the pain of rising prices, it’s those on lower incomes, renters, people with disabilities and those in the most deprived areas that are facing impossible challenges.”

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She claims renters are less likely to have wiggle room in their budget to begin with because they spend 31 per cent of their income putting a roof over their head, compared to mortgagees who spend 18 per cent.

“They’re also being hit harder by rising prices, especially by hikes in rents. [In ONS studies] renters were twice as likely to say their housing costs were rising (33 per cent compared to 16 per cent of those with a mortgage).

“It means the ONS figures show that around half of renters have cut back on food and essentials – compared to 33 per cent of those with a mortgage and 27 per cent of those who own outright.  

“They’re four times as likely to be behind on their energy bills than those paying a mortgage (eight per cent against two per cent). And they’re more than four times as likely to be behind on their housing costs (four per cent against under one per cent). 

“They’re also more likely to be borrowing more - 29 per cent compared with 19 per cent overall. And they have less to fall back on too: 50 per cent of renters couldn’t afford a £850 expense out of the blue, compared with 29 per cent overall.”

And she concludes: “Unfortunately, things are only going to get worse … With less to fall back on, they’re more likely to wipe out any lockdown savings and build up even more in debt and arrears."

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    And I can bet Shelter and Gen rent have no solution !! Given their attacks on us have led to the drop in supply and increased rent…. Oh well, I am sure Boris can come up with an amusing and witty comment 😂

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    Yet another article confusing rent and mortgages. THEY ARE NOT THE SAME.
    Mortgages can be fixed for several years so of course the payments can't increase in that period. However, insurance, boiler servicing, repairs and maintenance can all increase.
    Rent can be increased annually but often isn't.
    In the case of HMOs utilities are usually included in the rent so HMO tenants are largely protected from those price increases.

    In terms of cutting back on food how much of that depends on exactly how the question is asked?
    Have I cut back on food? Yes
    Why have I cut back on food? Because supermarkets and restaurants have had supply issues and I could do with losing weight.
    Is it related to affordability? No.

    I'm sure some people are struggling but how much of that is because of lifestyle choices?
    One of my UC tenants lives in the centre of town opposite Iceland and 2 minutes walk from KFC. She gets Deliveroo to bring her KFC to her.

  • Mark Wilson

    Another joke like post!

  • George Dawes

    They should rename this blog the daily fail , never seen so much ott scaremongering in ages

    Next week the end of times 🥱

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    George - I agree the press/ourselves can get a little “ 4 Horsemen of the Apocalypse “ !! But as I have said before, as landlords we are wealthier than most and have a get out of jail free card…. We can sell the lot, pay a crap load of tax but still walk away with an amount of money most could only dream of, well those that have been in the PRS for a while and are mortgage free. The tenants have few options though, just the relentless grind. I consider myself truly blessed, and I think some landlords should look at the bigger life picture more often.

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    Simon myself and most others on here got to where we are through hard work and going without, I'm certainly NOT going to be made to feel guilty about that, the other side of the coin is that most that whinge that they are poor are poor because they are workshy and lazy , the truth can hurt but the truth is the truth and has to be told as it is

     
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    Simon - you're right that some of us are in a good position. Certainly a better position than a lot of tenants but most of us are a lot older and have had more time to get where we are.
    Back in the 1980s when I was living in a Council flat with a loser husband or the 1990s when I was a single parent on long term income support I never imagined I would ever have any degree of wealth.
    Fast forward a couple of decades and now I have multiple properties and provide homes for dozens of people. It involved acquiring a more satisfactory husband, working long hours in unskilled jobs and taking some pretty big financial risks but it seems to have paid off and right now I'm in a pretty good place.

     
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    Suggests you all read the latest bill, conservatives are communists.

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    I lived in rented rooms for 9 years in various Towns around the UK following the work. I worked 7 days a week all my life, always saved half my wages at the same time I was not short of anything and always gave regular money to help my widowed Mam god bless her, unlike today’s generation they’d bleed their parents dry. I never smoked didn’t drink alcohol until 22, didn’t buy News papers or go swanning off to foreign parts on holidays, of course no phone Bills, Broadband Contracts or sky monthly drain, that’s where a lot of dosh is going now. Plus its worse they are making it compulsory to waste your money (MTD). So if they want to save money the first thing to do is earn it, then make some sacrifices and save, your financial problems will disappear.

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    I've never lived in rented rooms, however myself, wife and very young children have lived in caravans on building sites while renovating / building, you get out of life what you put in, but now we have the ''entitled'' generation who want, expect, it's my human right.

     
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    Simon, many of us are getting older now dozens of my friends and former work colleagues are gone rip many were younger than me. Getting out is easier said than done. While some LL made money on recent years without much effort thanks to a stupid low interest rate unlike when I was paying up to 14% and briefly more, if BoE hadn’t done this and abolished savers it would have been a different kettle.
    Ok say if you had £1’000000. equity after costs and allowable deductions and you want out but there a tax liability c/gains tax 28% = £280k = £720k then if you die say after 3 years it all comes back into your Est again tax purposes & taxed @ 40% inheritance tax £400k - £600k,
    £280k previous paid is washed away and don’t count plus the £400k, now you’ll have paid £680k tax or 68%tax, not easy to walk away think on, just my thinking on the back of a business card

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    Andrew I stayed in a rented Caravan too on a Caravan Site in the Wash when I worked in Boston & Sleaford, Lincolnshire the cold was unbelievable, there was a small coal fire about 30cm cube which soon went out, then you knew all about it, that’s when I realised there’s a big difference between a Mobile home and a Caravan, getting some where to rent was difficult back then, tell those guys Removing Section 21 to go and live in one like us they won’t be half so smart.

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