Renters saved less than owners during lockdown restrictions

12 June 2020 | Renting

Renters saved less than owners during lockdown restrictions

Government data shows that private renters spend a higher proportion of their budget on essential items that have not been cut back during the Coronavirus lockdown.

Renting households spend 61 per cent of their usual weekly budget on essentials, compared with 52 per cent for households who own their home outright or with a mortgage, according to data from the Office for National Statistics.

This is largely driven by housing costs, says the ONS, which account for 28 per cent of budgets for renting households and 21 per cent for homeowners.

“Our data also show that spending on activities including holidays and eating out is proportionally lower among renters, potentially limiting their ability to manage housing costs alongside a loss of income” says the ONS.

Franz Doerr, chief executive of deposit alternative service flatfair, says: “Renters do not have as much breathing room to cut back on spending, leaving them vulnerable to economic shocks. While it is positive that the government has further extended the moratorium on evictions, they cannot just keep kicking the can down the road. 

“Action needs to be taken to support tenants and landlords alike to communicate, and ensure that a fair and equitable solution is found in the unfortunate cases where a tenant cannot pay their rent.”

This post has originally been featured in Letting Agent Today.