Yahoo Finance Cost of living: UK rent hikes bigger concern than energy bills
UK tenants are more concerned about the rising cost of rent than increased energy bills amid a sharp cost of living squeeze, new data has found.
According to research from flatshare site SpareRoom, some 86% of people admitted that rising rent was their key financial concern, ahead of increased energy bills (84%) and the weekly cost of shopping at 68%.
Other areas of worry included petrol (50%), travel (42%) and phone and broadband (33%). SpareRoom’s survey questioned 11,706 renters between 3 and 20 March.
As many as 96% of renters said they were concerned about the general rising cost of living, while 61% of homeowners with lodgers said they would increase their rent to tackle the rising cost of bills.
Some 45% of flat sharers had bills included in their rent, rising to 56% in London, meaning increased energy costs are likely to have a knock-on effect on rental prices.
Read more: Cost of living: Everything that will cost you more in April
In a second survey, which was conducted with 4,298 homeowners, the main concern was rising energy bills and petrol costs, at 99% and 75%, respectively.
Of those who previously had a lodger but currently do not, 91% said they would consider it again to offset increased bills.
“It’s pretty much unheard of for us to survey our users and get such overwhelmingly conclusive results. You’d be hard pressed right now to find someone who isn’t worried about the cost of living increasing,” Matt Hutchison, director at SpareRoom, said.
“We’ve had a decade of austerity, followed by two years of living with a pandemic — and we already had a housing crisis going into it. We know affordable housing has been a key issue for a long time, but it could well become a defining issue of this century if something isn’t done.
“The government has to think longer term about housing. No party can fix the crisis in time for the next election, so all parties need to work together to create a vision to make housing affordable again for the next generation.”
Read more: Energy price hike: 5 million English households to feel pinch from rising bills
It comes as the energy price cap has increased by around £700 ($918) a year as of 1 April, adding to the cost of living crisis as consumers also face higher taxes, soaring inflation and lagging wage growth.
The 54% rise in the energy price cap means a British household using a typical amount of gas and electricity will now pay £1,971 per year. It is the largest increase in the energy regulator Ofgem's price cap since it was introduced.
Some 4.5 million prepayment customers will also see an average increase of £708 — from £1,309 to £2,017.
The price cap is reviewed every six months, and prices are expected to rise yet again in October, with some estimates saying it could reach £3,000.
