According to recent research conducted by consumer champion Which?, approximately 700,000 households failed to make a housing payment last month.
In light of this growing issue, Which? is urging businesses providing essential services to do more to support people amidst the ongoing cost-of-living crisis.
Renters were particularly hit hard, with about one in 20 (5.2%) surveyed confessing to missing a payment in the last month.
The research further highlighted that missed rent payments have remained high over the past year, indicating an ongoing struggle for many to maintain their housing.
Mortgage holders were not exempt from this issue, with 3.1% of those surveyed admitting to missing a payment in the last month. This is in response to the Bank of England’s continued increase in interest rates.
Alarmingly, approximately 2 million households failed to make at least one payment for their mortgage, rent, loan, credit card, or bill in April. The 7.3% missed payment rate recorded is consistent with last year’s rate, but it’s higher than the rates in April 2021 (6.5%) and April 2020 (5.2%).
Bills are the most commonly missed payment (4.4%), with energy bills topping the list (2%), followed by council tax (1.6%). Six out of ten households (59%) – estimated to be 16.6 million households – confessed to making at least one adjustment to cover essential costs, such as utility bills, housing costs, groceries, school supplies, and medicines in the last month.
These adjustments include measures such as cutting back on essentials, dipping into savings, selling possessions, or borrowing money.
With the Bank of England predicted to raise interest rates again next Thursday, financial pressure on consumers is expected to continue throughout 2023. Which? advises those struggling to make essential payments to contact their providers for assistance.
In response to this crisis, Which? has launched a campaign urging essential businesses, such as energy firms, broadband providers, and supermarkets, to do more to assist struggling consumers and ensure they are providing value for money.
Rocio Concha, Which? director of policy and advocacy, said: “It’s very worrying that so many households are missing housing payments. We’d encourage anyone who’s struggling to seek free debt advice and reach out to their mortgage provider or landlord for help. As so many people face financial hardship,
“Which? is calling on businesses in essential sectors like food, energy and telecoms providers to do more to help customers get a good deal and avoid unnecessary or unfair costs and charges during this crisis.”
