Financial outlook for 2018 a bigger concern for renters than those with a mortgage
Equifax reveals London and Scottish renters most worried about rent rises for 2018
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 20181.
In Scotland 55% of renters expect their rent to go up in 2018; 52% of renters in London expect the same. And 9% 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% said they would not be able to afford any increase in monthly rental repayments, compared to just 11% 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 accommodation2. And there is fear among renters that this would significantly stretch their finances. 42% of renters in the South said that they would not be able to afford any increases in monthly rent payments; 37% of London renters and 35% 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."ref1
To help consumers keep control of their budget, Equifax, the credit information provider, has added an interactive Equifax Budget Planner to the tools on its website - http://www.equifax.co.uk/newsroom/index.html.
1All figures, unless otherwise stated, are from YouGov Plc. Total sample size was
was undertaken between 16th and 17th October 2017. The survey was carried out online. The
been weighted and are representative of all GB adults (aged 18+).
Equifax Inc. (Equifax) is a global information solutions company that uses unique data, innovative analytics, technology and industry expertise to power organizations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions.
Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor's (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs 10,100 employees worldwide.
Equifax Limited is one of the Equifax group companies based in the UK.
Equifax Limited is authorised and regulated by the Financial Conduct Authority.