Renters forced to turn to state benefits to afford rising cost of living

renters forced to turn to state benefits to afford rising cost of living

“As rental prices have soared in recent years, many renters have raided savings pots and borrowed to make ends meet. After exhausting those options, many renters are now forced to turn to benefits to meet their monthly bills.” (Credit: PA)

Almost a third of renters have been forced to turn to government benefits as a result of spiralling rental costs in the UK.

According to research from lender Creditspring, three in 10 renters have had to lean on benefits to get by, with another 40 per cent stating that this is the most financially unstable they have ever felt.

Data from the Office for National Statistics finds the average cost of rent in the UK rose by 9 per cent in the 12 months to February this year – the highest annual increase since records began in 2015.

Neil Kadagathur, chief executive at Creditspring, says: “As rental prices have soared in recent years, many renters have raided savings pots and borrowed to make ends meet. After exhausting those options, many renters are now forced to turn to benefits to meet their monthly bills.”

Research published by data-gathering website Statista suggests landlords were increasing their prices due to the rising cost of running a rental property.

Sharp rises in rental values have a greater disproportionate impact on young people, who are less likely to have made it on to the housing ladder and more likely to be living in rental accommodation.

As such, further research from Creditspring previously found that money worries are creating a mental health time bomb for young people, with almost 40 per cent of 18-to-34 year olds saying their mental health has significantly worsened as a direct result of the cost of living crisis.

The lender found a third of young people say they are more in debt now than they were 12 months ago, with a further third saying their financial worries have reached the point where they are unable to sleep.

Kadagathur adds: “Forced to put up with ever-growing essential costs, many renters are faced with little option but to borrow each month to keep pace with rising rents – a vicious cycle where debt piles soar but savings pots vanish as they struggle to make ends meet.

“This is driving many into unsustainable levels of debt and has forced growing numbers to return to family homes as they simply cannot afford to continue to live independently.”

OTHER NEWS

6 hrs ago

Who are the 38+ lawmakers boycotting Netanyahu’s address to Congress today?

6 hrs ago

Raw’s latest numbers won’t break anyone’s heart

6 hrs ago

Andy Murray sticks up for mother Judy after Emma Raducanu Wimbledon furore

6 hrs ago

Cyber chaos: Ukrainian hackers disrupt Russia's banking system

6 hrs ago

Comic-Con 2024 Issue

6 hrs ago

Motaung Jnr on why Turkey pre-season was crucial!

6 hrs ago

Donald Trump Misses 12 Putts Playing Golf With Bryson DeChambeau

6 hrs ago

Gildan’s Reinstated CEO Embroiled in Tax Dispute Over Forex Trades

6 hrs ago

Garage clothing rebrand draws backlash over racy ad: ‘More like GarBage’

6 hrs ago

Saskatoon Berries slugger Carter Beck nabs all-star game MVP honours, Division I transfer

6 hrs ago

After 8 years, cat missing from Montreal turns up in Ottawa

6 hrs ago

4-month-old Dusk is looking for a family to take him on outdoor adventures

6 hrs ago

65-year-old CEO turned at least 88% of his employees into millionaires after selling his company for $70 million

6 hrs ago

Chicago suburb ranks among Fortune's '50 Best Places to Live for Families'

6 hrs ago

Trump rally gunman looked online for info on JFK assassination, FBI director says

6 hrs ago

Live updates: USMNT playing France in 2024 Olympics opener

6 hrs ago

What is VAR? What to know about the 2024 Paris Olympics technology

6 hrs ago

Olympic breaking? Here's a look at all the new events at the 2024 Olympics

6 hrs ago

Look up! 3 meteor showers to catch over Chicago skies this summer

6 hrs ago

American hostage families' message for Netanyahu in D.C. meeting: Bring them home now

6 hrs ago

Deputy who killed Sonya Massey worked for 6 agencies in 4 years

6 hrs ago

British equestrian great Dujardin out of Olympics after video shows her repeatedly whipping horse

6 hrs ago

3 dead in Somervell County crash

6 hrs ago

Netanyahu seeks support for Gaza war in address to Congress that sparks large protests and boycotts

6 hrs ago

Former longtime Rockets radio announcer Gene Peterson dies, team announces

6 hrs ago

Texas Democrats say RFK Jr.'s application to get on Texas ballot 'must be rejected'

6 hrs ago

Want to vote this November? Here's how to register in Texas

6 hrs ago

Big price cut ordered for inmate phone and video calls across Texas

6 hrs ago

6 things you need to know about cooking with ghee

6 hrs ago

Israeli prime minister Netanyahu addresses Congress as scores of Democrats boycott

6 hrs ago

These companies reporting next week are at risk of an earnings blowup

6 hrs ago

Boy, 14, busted in random caught-on-camera baseball bat attack on woman, 58, in NYC: cops

6 hrs ago

What 20 Of The Most Famous USA Women's Gymnasts Look Like Then Vs. Now

6 hrs ago

Solly Mapaila slams the ANC, names preferred GNU partners

6 hrs ago

See Timothée Chalamet's Bob Dylan perform "A Hard Rain's A-Gonna Fall" in “A Complete Unknown” trailer

6 hrs ago

NASA releases eye-popping, never-before-seen images of nebulae, galaxies in space

6 hrs ago

What Manchester City & Sony television's deal means for the future of sports entertainment

6 hrs ago

How much passive income could I make for every £1,000 invested in Aviva shares?

6 hrs ago

The 10 most popular cars on Consumer Reports

6 hrs ago

Assam govt reclaimed encroached land exceeding the size of Chandigarh: CM

ALONGWALKER VIETNAM: Kênh khám phá trải nghiệm của giới trẻ, thế giới du lịch ALONGWALKER INDONESIA: Saluran untuk mengeksplorasi pengalaman para pemuda global