Private renters are twice as likely to have no savings than mortgage holders and regularly cut back on food, new figures reveal.
According to the latest Financial Wellness Index which are produced by the financial services company Momentum UK and researchers from the University of Bristol, one-in-three private renters have less than £100 in savings, compared to one-in-seven people who have a mortgage on their home.
The report estimates that on average, private renters send half their salary to their landlord each month while one-in-five have to cut back on their food in order to meet the rent.
Fourteen per cent of private renters admitted having to borrow money from friends or family to get by while 8 per cent said that they had to sell some of their possessions to raise funds.
The figures come as more than four million households in the UK now rent their home from a private landlord, a figure which is nearly twice as many as 10 years ago.
House prices in the UK are set to hit record highs later this month despite the uncertainty created by June’s Brexit vote.
Dominic Baliszewski, director of consumer strategy for momentum UK, said: “With home ownership in decline, the number of people facing these financial challenges and seeing their living standards fall is only going to grow. That’s why it’s so important that the government delivers on the pledges made in its housing white paper. For those who have only recently moved into private rented accommodation and are not used to living on a budget, there are now apps and online tools available which can help to make your money go as far as possible.”