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Generation Rent left financially vulnerable

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
18/05/2016

A worrying number of tenants have no plans in place to cover their rent should they become unable to work

Almost five million renters in the UK have no insurance that would help them pay their rent if they became too ill to earn for three months or more, according to research revealed today from Royal London. And this is despite recent cuts to housing benefits potentially leaving them at risk.

Over a quarter of renters in paid employment (27%) said they knew someone who had already struggled in this situation, while a third admitted they don’t know how long they could survive if they couldn’t work.

Six in 10 people (60%) who had some idea said they could only survive on their savings for three months or less. Their first port of call would be to apply for state benefits (53%), followed by reducing their household expenses (47%) and then dipping into their savings (39%).

Debbie Kennedy, head of protection for Royal London Intermediary, said: “Renters who assume that housing benefit will be there when they need it could find the reality is very different. A series of cuts to housing benefit means that more people would not get their rent paid in full if their income fell unexpectedly.

“It would be bad enough to be taken ill without the added anxiety of getting behind with the rent and facing possible eviction. Income protection may be more affordable than people realise and can provide a financial safety net and enable people to focus on getting better.”

Economists predict over the next ten years the UK will experience falling levels of home ownership and rising levels of private renting. In 10 years’ time, 59% of 20-39 year olds will rent privately, up from 45% in 2013. A further 15% are in social housing, renting from housing associations or local authorities.


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