Research show clear link between mortgage and rent struggles and depression – ONS

A report from the Office for National Statistics (ONS) has found a clear link between depression and people struggling with mortgage and rent payments, energy bills, and increased personal debt.

Around one in four (27%) adults who reported difficulty in affording their rent or mortgage payments had moderate to severe depressive symptoms, around two times higher compared with those who reported that it was easy (15%), according to the ONS.

While a similar amount (24%) of those who reported difficulty paying their energy bills experienced moderate to severe depressive symptoms, which is nearly three times higher than those who found it easy to pay their energy bills (9%).

Nearly a third (32%) of those experiencing moderate to severe depressive symptoms reported that they had to borrow more money or use more credit than usual in the last month compared with a year ago; this is higher compared with around one in six (18%) of those with no or mild depressive symptoms.

And brokers and IFA’s have said they are increasingly seeing clients who are facing similar levels of stress.

Matthew Jackson, director at Mint FS, had an example fresh in his mind: “I spoke to a client yesterday who had just had notice of a fourth rent increase in 18 months from her landlord.

“In order to pay the increased rent, they were putting spending onto credit cards and dipping into savings. The stress in her voice and face was evident.

“The latest rent increase pushed their affordability even more and this is before they factor in the cost of heating which they are now needing to use as they have small children.

“A mortgage would be cheaper than renting, but the reduction in their savings means a smaller potential deposit and they have a less than perfect credit score.

“This is the neverending cycle that too many families find themselves in and a knock-on effect of the mini-Budget and cost of living crisis that is causing real stress and strain on families around the country.”

It is also something that Gary Boakes, director at Verve Financial, said his firm is seeing increasing amounts of: “As a company, this was something that we were seeing more and more of. Improving financial wellbeing and mental health is something we are very passionate about and wanted to do something to improve ourselves and also to be able to help any customer that calls or walks through our doors.

“So Everybody at Verve financial is now either Mental health first aiders or going through the process at the moment.

“We believe that anybody that comes to speak to us potential is in a vulnerable position, whether that is divorce, receiving an inheritance through death, mortgage payments shocks or the rising cost of living crisis.

“So we wanted to be more approachable, improve our ability to listen and communicate non-judgementaly, to be able to give support and information and to encourage them to get support or professional Help. We believe that this will put us in a better position to help people in what is going to be a very challenging 12-18 months.”

And Samuel Mather-Holgate, independent financial advisor at Mather and Murray Financial, wanted to remind people who are struggling of the valuable work of charities in helping those facing difficulties.

He said: “These latest statistics are really concerning. Britain was in a mental health crisis prior to the pandemic and, of course, that made things significantly worse.

“The current cost of living crisis in compounding the situation and I am really worried that the government don’t seem to be looking after those who need it most.

“It is clear that there is a major link between having to borrow money or not be able to afford your bills and anxiety and depression.

“For the Government, this should not be just a social priority, but if you are suffering from depression caused by your economic situation you are less likely to be able to work. Thankfully, there are some great debt charities out there to help people who need it.

“StepChange are fantastic and help those with debt who are struggling with their repayments. Citizens Advice can help if you are worried about your energy bills or rent.

“On top of that, there are also some great counselling charities to help if you need to speak with someone about mental health.

“The NHS has huge waiting list for people who need some kind of talking therapy so look for local charities. LIFT, in my local area Swindon, does great work when the wait for the NHS is just too long.”

Meanwhile, Lewis Shaw, owner and mortgage broker at Riverside Mortgages, called on politicians to step up and further help those struggling financially.

“These are very worrying statistics, but sadly it’s unsurprising to see them,” said Shaw. “I’ve spoken to many clients over the past few months who are feeling the pinch and are worried about the direction of travel for both mortgage rates, energy costs and the recession.

“The incessant rolling news telling everyone we’re in a crisis isn’t helping. While what they’re saying may be true, perhaps broadcasters should have more of a duty to understand the fear they’re striking into the hearts of ordinary hard-working Brits who are suffering at the sharp end.

“The NHS is already stretched to breaking point, so the last thing we need is a mental health crisis blowing up.

“When will politicians of all stripes realise that we need a new economic settlement? People need more money in their pockets, and there’s plenty of money floating about; it’s simply that no one has the wherewithal to put into action what needs to be done.

“Tax wealth, for god’s sake, before the country devours itself.”

But Carla Hoppe, founder at Wealthbrite, isn’t holding much hope in the Government coming to the rescue: “The question really is what do we do about these statistics? There is no new money coming from Government and individuals can’t afford to pay for therapy, counselling or other forms of mental health support.

“Increased mental health concerns manifest in increased absence, long-term sick and low productivity – all good reasons for business to step in and step up by providing increased support for their people’s mental health and the underlying concerns about money with financial literacy programmes, debt management support and personalised financial coaching.

“We can’t afford to do nothing.”

Do you have a client struggling with debt? Here are just a few of the charities that can help.