Rising costs hit renters hardest
Renters fared worst when it comes to the rise in the cost of living over the last year, according to the Office for National Statistics.
It said that households that own their homes have seen much slower cost increases (2.3% per year on average) than either privately renting households (2.5%) or socially renting households (2.7%).
This is compounded by the fact that privately rented and owner-occupied households have seen slightly stronger increases in incomes relative to their costs than socially rented households.
When households were measured in terms of their income, low-income households saw stronger rises in prices and costs (2.6%) than high-income households (2.2%).
Becky O’Connor, personal finance specialist at Royal London, said: “These statistics show the already vulnerable being hit hardest by rising living costs. It is telling that the ONS explicitly draws the distinction between costs for homeowners and those in private rented accommodation.
“Private renters not only face greater insecurity of tenure but also higher costs for the privilege. This affects their ability to save a deposit, putting home ownership further out of reach and trapping them for longer in rented homes.”