The number of renters who are concerned about their income has increased since last Autumn as cost-of-living pressures remain a reality for many.
In October 2023 60% of young renters (aged between 18 and 40) said they had concerns about their income, the property market and cost of living.
But when quizzed with the same question in February 2024, this figure rose to 68% according to financial mutual, OneFamily, which ran the study.
When asked about the property market, 71% were worried about the cost of housing, compared to 51% last year.
The research comes as a report by the Office for National Statistics suggested annual private rental prices increased by 6.2% in the 12 months to January 2024, unchanged for the second consecutive month.
Meanwhile, over three quarters (77%) of renters aged 18 to 40 were concerned about the cost of living, compared to just under half (47%) in October 2023.
Jackie Davies, head of customer service and direct sales at OneFamily, said: “It’s a worrying time for renters, with prices of everyday items still remaining high due to the cost-of-living crisis.
“For those that want to get on the property ladder, it is challenging to save every month due to these high costs, particularly as rents have increased over the last year.”
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Case Study: ‘It’s harder to put money aside each month’
Michelle Steele, a 44-year-old mum renting in South East London is saving into a OneFamily lifetime ISA to buy a house but has had to cut down on her monthly investments due to rising costs.
She said: “I opened my lifetime ISA to start saving for a house, to put down some roots and have a nice home to continue to raise my son in.
“I have found that the cost-of-living crisis has made it much harder to put money aside each month – we’re all living in a very difficult economic climate.
“I was saving £100 from my salary, but I had to reduce it to £25 each month because my food costs have gone up from £50 each week to £150 and I have a growing teenager to feed. I don’t shop extravagantly, mostly Aldi or Lidl, and definitely not the expensive brands.”
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The Lifetime ISA (LISA) is a product set up by the UK government to help people buy their first home or save for retirement. The government tops up lifetime ISAs by 25%, so for every £100 saved, an extra £25 will be added on top. The maximum saving limit into a lifetime ISA per year is £4,000, which equates to an annual bonus of up to £1,000.
OneFamily’s research involved two surveys, the first in October 2023, which asked people aged 18 to 40 about a number of topics including their average salary, cost of rent or mortgage and overall quality of life. The second, in February 2024, asked the same questions and shows how financial attitudes and concerns have changed in that time.
