Tenants are spending a “shockingly high proportion” of their wages on rent, new research by CreditLadder has revealed.
The rentals platform found that it takes the average tenant in full-time employment 11 days each month to earn enough money to pay their monthly rent out of their net salary.
It takes an additional two-and-a-half days each month to pay for basics, such as food, transport and energy bills, on top of the rent, according to the online platform, which enables tenants to make their rent payments count towards their credit score.
The Government is currently looking at introducing a measure that ensures a tenant’s rent payment history is added to their credit score.
The CreditLadder study also shows that, in Gloucester, it takes 13 days, or two days more than the average, to pay the rent, while in Brighton & Hove, Peterborough, and Reading, it takes 12 days to pay the rent each month.
In contrast, it takes just six days to be rent-free in Derby, while in Leeds, it takes tenants seven days on average to pay off the rent, followed by Bolton, Belfast, Coventry, Doncaster, Manchester, Newcastle, and Wolverhampton, at eight days.
Sheraz Dar, the CEO of CreditLadder, comments: “It’s clear that rent eats up a shockingly high proportion of people’s wages, even though for many renting privately, it is the only option.
“Our research also highlights the big differences in rental affordability up and down the nation, which can vary at its most extreme by up to seven days.”
As tenants struggle to make their earnings stretch, we encourage landlords to look at ways to protect their rental income against potential rent arrears. Our essential Rent Guarantee Insurance is one option – this peace of mind cover ensures you still get paid if your tenants can’t.
We offer instant cover online – take a look: https://www.justlandlords.co.uk/rentguaranteeinsurance