A report from the government’s Office for National Statistics shows that renters and mortgage holders have higher odds of experiencing financial vulnerability than those who own homes outright.
Renters have around five times the odds of experiencing financial vulnerability than someone owning their home outright, and they spend a higher proportion of their disposable income on rent (21 per cent), than mortgage holders on their mortgage (16 per cent).
Older people are more likely to own their homes outright, but the English Housing Survey shows 25.5 per cent of all social renters are retired along with 6.8 per cent of all private renters.
The data also shows 7.0 per cent of owner occupiers aged 65 to 74 are still repaying a mortgage along with 2.3 per cent of those aged over 75.
Food shopping (96 per cent), gas or electricity bills (57 per cent) the price of fuel (37 per cent) rent or mortgage costs (27 per cent) continue to be most reported reasons why cost-of-living had increased.
Helen Morrissey, an analyst at business consultancy Hargreaves Lansdown, says: “The cost-of-living crisis continues to squeeze the life out of our finances with renters particularly vulnerable to rising costs.
“According to the data renters are around five times more likely than outright homeowners to experience a financial vulnerability though those still paying a mortgage are also at increased risk.
“Those approaching and in retirement are far more likely than younger groups to have paid off their mortgage but recent English Housing Survey data shows there are many who still have to account for these costs. Over a quarter of social renters are retired and seven per cent of owner occupiers aged between 65 and 74 are still repaying a mortgage.
“Those with a mortgage can look forward to a time when payments end but for those who rent the costs continue and alongside already eye watering increases in food and fuel it can make life extremely difficult.
“Enormous house price increases over the years have made it hard for people to get on the housing ladder. They either get on it later, or not at all, and this has long ranging impacts for people’s financial resilience at all ages. High housing costs make it that bit harder for younger generations to save, and this includes putting away enough to give them a decent income in retirement.”
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First prize for stating the obvious.
Fuel prices this winter will cause people further hardship. Although the price is coming down now, most people are no longer receiving Govt support which was roughly the same as the current price reduction. If prices go up again because of Putin or lack of storage or if we have a cold winter, it could be even worse than last year. Our Govt has absolutely failed us - we have no fuel security, expensive & unreliable green energy, & we are ignoring our own resources of fossil fuels in the name of NetZero!
Anyone using electric heating is absolutely hammered.
I agree with you regarding the ludicrous worshipping of green energy but I do think the help everyone got from the Government paying around half of our energy bills was laudible - perhaps overgenerous like the 80% furlough payments.
Many Landlords and owner occupiers are facing their mortgage costs trebling but there is no sign of any help for us with this which could cause far longer lasting problems than arrears on energy bills.
Tenants have been far more protected from increased housing costs than mortgaged homeowners.
Rents can only be increased once a year. Anyone on a tracker or variable rate mortgage will have had an increase nearly every month for the last year.
Rents can only rise in line with local comparables and excessive rises can be challenged at a Tribunal.
Mortgages coming off a fix are likely to double or treble overnight.
Tenants have access to Discretionary Housing Payments from the Local Authority.
Home owners get no help.
Tenants can downsize or move to a cheaper area far more easily and cheaply than a home owner can.
Yes Jo. Tenants are at least capped for the year, Mortgage holders & LL’s with lending on SVR well skys the limit
And a couple of days ago there was an article in the Telegraph saying “ Landlords are not ‘profiteering’ from the mortgage crisis – most are shielding renters from it”.
No surprise, but people with mortgages are at risk too. At least rent is the most tenants will pay a month, a mortgage is usually the minimum a mortgage holder pays.
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