Renters almost twice as likely to report rising costs as homeowners: ONS   – Mortgage Strategy

Renters are almost twice as likely as mortgage holders to report that their housing costs had risen over the last six months, Office for National Statistics data shows.  

The numbers watchdog says that 39% of tenants were more likely to complain of a rise in rent, compared to 22% of mortgage holders who reported higher home loan payments. 

It adds that 41% of renters were more likely to find their payments “very or somewhat difficult” to manage compared to 26% of mortgage holders, in the department’s latest public opinions and social trends survey. 

Also, 43% of renters were more likely to report being “unable to afford” an unexpected expense of £850, compared to 20% of mortgage holders. 

The data comes after the cost of living eased for the second month in a row to 2.6%, official figures showed on Wednesday, far lower than the 11% inflation peak seen in 2022. 

However, average UK rents increased by 7.7%, to £1,332, in the year to March. 

This annual growth rate is down from 8.1% in the year to February — but is still almost three times higher than headline inflation. 

The wide-ranging Renters’ Rights Bill is making its way through parliament, which proposes to limit rent rises to once a year and ban Section 21 no-fault evictions. 

Generation Rent chief executive Ben Twomey says: “Renters across the UK are facing soaring rents which are swallowing our earnings. 

“When we are forced to spend too much of our income on rent, the effects ripple across the rest of our lives.  

“Price caps rightly exist for our energy and water bills, but there is nothing to stop a landlord suddenly hiking the cost of someone’s home.  

“Thankfully, the government can and must act on this by introducing a limit on how much landlords can raise the rent, helping to slam the brakes on soaring rents.” 

By contrast, mortgage holders have seen three quarter-point base rate cuts since August falling to 4.5%. 

However, some 1.8 million mortgage holders are due to refinance their home loans this year, according to UK Finance, which will see many move to higher rates than the market has offered over the last three to five years.