Some research from Confused.com which suggests that renters could be looking to make savings on things like car, contents or life/health insurance as the rent heads upwards, following the Renters Reform Act coming into effect. Landlords may well price in any potential costs in litigation, or pet damage, by raising rents this year.
The increasing cost of living is having an impact on many people across the UK, particularly renters. That’s as renters are now handing over 39% of their monthly take home pay to their landlords, on average. That’s the equivalent of 2 days a week worth of work being spent purely on rent.
That’s according to new research by Confused.com home insurance, which found that the average monthly rent cost is now £839. Although, for some, this expense is even higher, with more than 1 in 5 (21%) renters paying out more than £1,000 per month to their landlord.
According to the research, nearly half (46%) of renters have had their rent increase in the last 12 months, with more than 3 in 4(77%) claiming this has affected their personal finances.
This includes almost 2 in 4 (37%) having to cut back on their personal spending. A third (33%) also admitted that they are unable to save due to the increasing costs of renting, impacting their financial future. While a further 28% have had to cut back on buying essentials like food to cope with rising rental costs.
With the cost of rent setting many back, it’s unsurprising that rent control and limits on increases are a top priority for over 1 in 2 (53%) renters in the upcoming Renters Rights Act, expected in May.
More affordable rental homes are a priority for nearly half (45%) of Brits in the upcoming Renters Rights Act. That’s followed by over a third wanting improved property standards (35%) and protection against unfair eviction (34%).
Despite renters paying out a significant amount of their monthly income on rent, many still face issues with the service they receive from their landlord. That’s as 3 in 10 (30%) have previously experienced issues in their rental property, including mould (40%), condensation (30%), damp (30%), and water issues (27%).
Although maintenance issues are the responsibility of the landlord(1), they can also result in personal damage to tenants personal property. Landlords are legally responsible for the property itself, but tenants must ensure they are properly covered for their personal belongings. Yet, worryingly, over half (55%) of UK renters don’t have renters contents insurance.
Over a quarter (27%) of renters don’t think they need content insurance, while a further 24% don’t think their possessions are valuable enough to justify this. That’s in addition to 1 in 8 (12%) not knowing how to set up contents insurance.
With rent continuing to rise alongside the overall cost of living due to inflation, many renters want better value for their money. But for many this is not the case.
The research found that over the last 12 months, nearly half (46%) of UK renters have faced rent increases. That’s followed by nearly a third (31%) who have experienced bill increases.
The upcoming Renters’ Rights Act in England aims to make renting fairer and more accessible for both tenants and landlords by improving security and helping renters stay in their homes for longer(2).
This will be welcome news to renters, as over a third (38%) have been asked to leave their rental property in the last 5 years. The top reasons for this include the landlord selling the property (17%), being informally asked to leave (10%), and through a formal eviction (8%). The new Act aims to safeguard renters and give them a fair and secure experience.
Under the new Act, it will also be harder to refuse potential tenants. Over 1 in 2 (57%) Brits have been refused a rental property, with the top reasons being having pets (13%) and not earning enough to qualify for the property (13%).
However, the new Act aims to increase access to the rental system for a wider range of tenants(3) and not discriminate based on having pets or children. This will allow renters more rights and accessibility within their tenancy.
Despite the act bringing better protection and accessibility to renters, tenants must be proactive in protecting their property from any risks. That’s why it’s important for renters to understand the importance of home contents insurance.
Matthew Harwood home insurance expert at Confused.com comments,
“In the current financial climate, home ownership is arguably the most difficult and expensive it’s ever been. And renting may be the only option for some. And renting certainly has its benefits – it gives you the freedom of running your own home without the commitment of a mortgage so you can be more flexible if you choose to move somewhere new. There are also the added benefits of the legal requirements of landlords to upkeep the property so there’s less pressure on tenants.
“But it’s still important for tenants to know their responsibilities within a rental agreement. Your landlord isn’t liable for any damage to your personal belongings if you were burgled or if an accident happens. That’s why it’s essential for renters to take out contents insurance.
“This protects renters against any damages to their belongings and also covers costs of accidental damage to your rental property. For instance, if you dropped something heavy on your hob and cracked it, your deposit would be protected through insurance rather than being taken by your landlord to cover damage costs.
“It’s not nice to think about anything going wrong with your rental property, but it’s important to be prepared and covered if the worst should happen. You can compare contents insurance for renters on our website to find a policy that works best for you and your lifestyle.”
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