Nationwide reveals tenants’ payments for ‘essential’ accommodation

A breakdown of essential and non-essential spending by individuals, devised by the Nationwide, reveals the extra amount that tenants are paying in rent right now.

The financial company says: “There continues to be an increase in the amount spent to pay for living in a home as spending on rent payments saw a 15 per cent annual increase in October, with the amount people spent to pay their mortgage up 13 per cent year-on-year.”

Along with accommodation costs, Nationwide says three other costs are ‘essential’ - and all have seen chunky increases.

Supermarket spending was up six per cent year-on-year and up seven per cent on September, likely as a result of the increased costs of food and drink items which are playing a major role in rising inflation. After two consecutive monthly falls in the number of transactions, October saw an uptick of five per cent in just one month as people spend more time at home.

Fuel spending has increased 23 per cent compared to October last year reflects the current high prices at the pump. The average single-transaction value of nearly £30 is 11 per cent higher than 12 months previous.

The amount individuals spend paying off existing debt, such as credit cards and personal loans, was up 15 per cent on last year, suggesting that the rising cost of living has forced increasing numbers to turn to credit to make purchases, therefore increasing the amount that is needed to be paid back.

Subscriptions such as Netflix, Amazon Prime and magazines and down four per cent on October 2021 – as people look to either cancel their subscriptions or look for cheaper plans.

But many other non-essential items were costing more, even if individuals purchased fewer of them or went without. 

Digital goods, such as console games and e-books, is 19 per cent higher than a year ago, while spending on clothing and shoes saw a four per cent annual rise.

Mark Nalder, payments strategy director at Nationwide Building Society, says: “As expected, rising essential costs are putting increasing pressure on households, forcing them to divert even more income towards them. Annual growth in non-essential spending is at its lowest level seen so far this year as people reign in spending on the things they want so they can afford the things they need.

With the festive season fast approaching, we expect consumers to look for discounts during Black Friday and Cyber Monday as a way of saving money in the run-up to Christmas before the nation starts to budget in the New Year.

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