Although those with a mortgage are also at risk of financial vulnerability, but the rising cost of living is not only affecting renters’ current finances, but their future stability, said Helen Morrissey, head of retirement analysis at Hargreaves Lansdown.
Office for National Statistics (ONS) figures showed that 35% were struggling with either rent or mortgage payments, but that renters were much more likely to face financial vulnerability.
Morrissey said: “The cost-of-living crisis continues to squeeze the life out of our finances with renters particularly vulnerable to rising costs.
“According to the data renters are around five times more likely than outright homeowners to experience a financial vulnerability, though those still paying a mortgage are also at increased risk.”
She added that while those facing rising mortgage payments were at least able to envision a time when the loan was paid off and they owned their home outright, whereas the more renters struggled, the further away the prospects of getting on the property ladder at all.
Morrissey said: “Enormous house price increases over the years have made it hard for people to get on the housing ladder.
“They either get on it later, or not at all, and this has long ranging impacts for people’s financial resilience at all ages.
“High housing costs make it that bit harder for younger generations to save, and this includes putting away enough to give them a decent income in retirement.”
