The latest Tenant Trends report by Pegasus Insight found that 50% of tenants have faced rent increases in the past year, averaging £100 per month.
The report revealed that 8% of tenants found monthly payments ‘barely manageable’, while 2% consider them ‘unaffordable’ and may need to move soon.
Another 33% said their rent stretches their budget.
Despite this, 46% report that their rent was manageable and affordable, while 11% felt it was ‘very affordable’.
In the past year, 40% of renters have had to choose between paying their rent and other essential expenses, with younger tenants – aged 18 to 34 – most affected.
Among those, 13% have missed a mortgage payment, with 20% saying they have been ‘hit hard’ by the cost-of-living crisis.
Those renting through agents have seen a higher percentage increase (61%) than those renting directly from landlords (54%).
Nearly 39% attribute rent increases to inflation.
Despite the rising costs, 81% of tenants expressed satisfaction that their rent offers value for money.
Mark Long (pictured), managing director and founder of Pegasus Insight, said: “This research highlights some of the discrepancies at play in the private rented sector (PRS) with a minority of tenants facing genuine economic hardship, many financially stable but making sacrifices to cover their rent and others taking repayments in their fiscal stride.”
“The 10% who are struggling may need landlord forbearance – the figures suggest that many tenants given a little breathing space do indeed catch up on missed payments relatively quickly.
“This may give some comfort to those landlords concerned about the Renter’s Rights Bill, which will lengthen the period between non-payment of rent and the potential commencement of the eviction process from two months to three.
Long added: “But overall, this research serves to illustrate the resilience of tenants in the private rented sector (PRS), with the vast majority keeping up their repayments, despite half experiencing chunky increases in rent over the past year.
“What’s more, despite these record rises, the fact that 81% are still content their rent represents value for money strikes a resoundingly positive note.
“These insights are just a fraction of the results revealed in our latest Tenant Trends research report. We will continue to track tenant profiles, rental experience and future plans.
“We believe that a deeper understanding of tenant finances, attitudes and aspirations is key to evolving the PRS and supporting those landlords who supply it.”
