A controversial wealth management company claims that almost two thirds of private tenants have suffered a deterioration in their mental and physical wellbeing, including in some cases hair loss and weight gain.

St James’s Place is in the news because of claims that it overcharged thousands of customers which, combined with other customer complaints, could cost the firm as much as £426m.

But despite the controversy, SJP has waded into debate about the private rental sector, claiming that a survey it conducted shows 24% of those who rent from a private landlord saying their financial situation has significantly worsened. In comparison, just 9% of those who own their home outright say the same, as do 15% of those with a mortgage. 

As such, SJP claims that 47% of private renters say they do not feel financially resilient compared to 17% of outright homeowners and 35% of mortgage holders.

The lack of financial resilience among renters is stark, says the company, with 40% stating they would not be able to personally cover an unexpected bill of £500, while just 6% of outright homeowners and 17% of mortgage holders saying they would face the same struggle.

SJP’s research, conducted among 6,000 adults across the UK, also claims to reveal the impact that renters’ financial position is having on their health and wellbeing. 

More than three in five (62%) report their mental health has suffered in the last year because of their financial situation. A third (34%) say their mood has been affected, a quarter (25%) are losing sleep, while 24% have become anxious about going out or seeing anyone else due to financial worries.

A further 24% have considered taking time off work due to the stress and 15% have found their relationship with loved ones has been affected. Worryingly, over a fifth (22%) have suffered from stress-related conditions in the last 12 month and 19% have experienced depression.

Persistent high interest rates over the last year or so has also affected mortgage holders’ mental wellbeing, with more than half (52%) saying their mental health has suffered, considerably more than those who own their home outright (28%).

SJP’s research also shows that financial struggles have cause physical health to deteriorate in the last year, with renters worst impacted again. Nearly two thirds of renters (63%), and 50% of mortgage holders report their physical health has suffered, compared to 28% of outright property owners. 

This includes financial worries impacting physical appearance, resulting in hair loss, more grey hairs and an overall sense of ageing (affecting 25% of renters, 22% of mortgage holders, but just 10% of outright homeowners); being forced to cook and buy cheaper, less healthy food (28% of renters, 19% of mortgage holders, 11% of outright homeowners); weight issues (14% of renters, 9% of mortgage holders, 6% of outright homeowners)

Alexandra Loydon, Director of Engagement and Consultancy at St. James’s Place, says: “Economic conditions have been challenging over the last couple of years, and high interest rates have had a significant effect on many of those living in the UK, with substantial numbers experiencing the impact of increases in rental and mortgage payments. Renters feel in a particularly precarious financial position, which in turn could lead to a struggle to afford any additional bills that come their way.

“SJP’s research highlights the profound, ongoing and worrying impact this is having on people’s lifestyles, physical wellbeing, and mental health, with more than three in five reporting struggles. The outlook for 2024 remains mixed, and it’s likely that renters – and to a lesser extent homeowners with a mortgage– will continue to feel the financial strain.

“It’s therefore important for people to take as many steps as they can to help with their financial situation, in order to try to take care of their physical and mental wellbeing too. Seeking advice and support and having a financial plan in place will help people to take back some control of their finances, as well as maximise their ability to build financial resilience. Speaking about finances to others can be a sensitive topic for many; however, it’s important people shouldn’t feel alone and are able to share their concerns, so that they can access help where they need it.

“Seeking advice from debt advice charities, financial advisers (who can provide guidance on budgeting and saving) and mental health professionals can have a really positive impact and provide vital support and reassurance through difficult periods.”