Almost three-quarters of a million households missed their rent or mortgage payment in April, according to the latest Which? Consumer Insight Tracker.

It said that housing bills have ‘jumped significantly this year’ because of soaring mortgage rates for homeowners and landlords.

The issue was particularly stark for renters last month, with one in 20 (5.2%) failing to pay their monthly bill to their landlord.

Which? added that 3.1% of mortgage holders missed payments in April.

Rising costs

Mortgage rates have jumped since the government’s mini-budget in September. The average two-year fix in April 2022 was 2.86%, but 5.35% in April 2023.

Tenants are also impacted by rising mortgage rates if buy-to-let landlords choose to pass on the increased costs. According to figures from the Office for National Statistics (ONS) one in five tenants in private rented properties saw their monthly rent increase 10% or more between February 2022 and February 2023.

Overall defaults

Overall, two million households (7.3%) missed or defaulted on at least one mortgage, rent, loan, credit card or bill last month.

Bills remain the most common type of missed payment among the population as a whole, with 4.4% failing to pay up. Energy bills are most commonly missed (2%), followed by council tax (1.6%).

Nearly six in 10 people had made at least one financial adjustment – such as cutting back on essentials, selling items or dipping into savings – in the past month to cover essential spending.

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.”