A large proportion of tenants who have recently moved are cutting back on spending on food and heating to meet new, higher rents, according to a survey by the Deposit Protection Service (DPS).
32% of the 2,210 tenants who responded to the DPS’ survey in March said they’d moved during the previous 12 months, with 72% of movers saying they are paying higher rents at their new homes.
73% of those tenants who had moved to more expensive rental properties said that they’ve been forced to reduce expenditure on essentials like food and heating to meet their new payments.
90% of the same group said that higher rents meant that they were less able to save money towards a mortgage deposit, with 89% saying that they were struggling to put money aside ‘for a rainy day.’
The survey also revealed that 49% of movers whose rent had increased had taken on a second job to meet the increased payments.
Matt Trevett, managing director at the DPS, said: “Rent reviews allow landlords or letting agents to adjust the rate to reflect any new cost pressures. The tenancy agreement should set out when these can take place.
“We’d encourage tenants to be open with prospective landlords about what they can reasonably afford to pay and for landlords to explain the rationale behind any increased rents at the outset.
“An open dialogue is crucial to preventing misunderstandings and can help avoid disputes.”
65% of respondents who had moved over the previous 12 months said that their rent had increased by up to 30%, with 8% saying it had gone up by more than 50%.
The data also revealed that 14% of movers said they’d had to offer more than the listed rental price to secure a property.
Of those, 9% said they had offered more than 21% of the listed price, with more than a quarter (26%) saying they’d offered between 11% and 20% in excess.
35% of movers reported they’d had to relocate further from their place of work than they’d wanted, 36% said that they’d had to rent in a cheaper area and 39% said they’d had to downsize.