The latest YouGov research commissioned by Equifax, the credit information expert, reveals that renters seem to be less confident about their finances for 2018 compared to those with a mortgage. And its renters in London and Scotland that appear to be most concerned about facing rent rises in 2018.
In Scotland 55 per cent of renters expect their rent to go up in 2018; 52 per cent of renters in London expect the same. And 9 per cent of London renters say they expect their rent to ‘increase a lot’, which could potentially put pressure on their finances in the New Year.
Looking ahead to 2018, renters could be in a more vulnerable financial position overall as 42 per cent said they would not be able to afford any increase in monthly rental repayments, compared to just 11 per cent of mortgage holders. With the recent Bank of England interest rate rise potentially increasing the cost of mortgages, it is likely that landlords will push up the price of rent for the 4.3 million households currently in private rented accommodation. And there is fear among renters that this would significantly stretch their finances. 42 per cent of renters in the South said that they would not be able to afford any increases in monthly rent payments; 37 per cent of London renters and 35 per cent of renters in the North feel the same.
“It is not uncommon to feel anxious or concerned about finances when heading into a new year,” said Lisa Hardstaff, credit information expert at Equifax. “The fact that so many renters are concerned about their finances if their rental payments were to increase shows that it is now more important than ever for them to stay in control of their finances. The concern is, however, not just limited to renters. Nearly a third of all individuals said that they are concerned about being able to afford all of their financial commitments, including rent, mortgage payments and utility bills, over the next year.
“Planning is vital for individuals to stay in control of their finances. Anybody struggling to keep track of their money should create a financial plan, for both their long-term and short-term financial commitments. By managing their spending, both renters and home owners can go into 2018 with a more positive financial outlook.”