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Renters concerned over finances

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People who rent a property are much more likely to feel financially insecure, compared to those who own their own home.

Research by Lloyds Bank found that while 70% of homeowners feel their financial situation is good, this figure falls to 53% for those who rent.

When asked about the housing market around 51% of homeowners had positive feelings, something shared by just 33% of renters.

The bank said many of these renters would like to purchase a home but were unable to do so at present. Of those saving for a property, the average person was able to put away £250 per month.

Despite this significant saving, 48% of wannabe homeowners said they didn’t cut back on clothes or non-essential items to help fund their deposit.

Across all sectors, consumer confidence has fallen to its lowest level since May, the firm said.

Concerns about the Labour market increased during the month, with homeowners and renters both fearing for the country’s employment situation. This follows a large rise in unemployment over the summer.

Again, renters were more pessimistic, with just 38% comfortable with the UK’s jobs market compared to 50% of home owners.

Empty nesters – people whose children have grown up and left home – felt more confident about both their own and the country’s finances.

Patrick Foley, chief economist at Lloyds Bank, said while there were some positive signs, both homeowners and renters had fears over unemployment figures.

“Households remain in a generally positive frame of mind, even though a slightly less upbeat view of the employment situation has developed recently,” he said

“With confidence around prospects for discretionary income remaining relatively firm, this bodes well for the recovery making further progress in the months ahead.”

Claire Garrod, head of personal current accounts at Lloyds Bank, said: “Spending power confidence took a step back for a second consecutive month in August, wiping out the improved sentiment that had built since May. However, levels of essential spending are still lower than they were a year ago, which suggests this blip in confidence may just be a mid-summer slow-down during the holiday season.”

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