Overview

Over a third (36%) of social renters are found to be ‘in serious difficulties’, with nearly a quarter of private renters also falling into this category (23%). This compares with just 13% of mortgagors and 5% of outright homeowners. Single parent households in rented housing were more likely than other types of family to be in difficulty.

While mortgagors spend on average one-fifth (22%) of monthly take-home income on housing costs, this rises to a third of income (34%) among private renters and 29% for social renters.

13% of mortgagors had seen their housing costs increase in the last six months because they had re-mortgaged when their fixed term came to an end, while 17% had seen costs increase due to being on a variable or tracker rate mortgage. Over a third of private renters (37%) and two-thirds of social renters (67%) had seen their housing costs increase in the last six months as a result of their landlord or housing provider increasing the rent.

44% of households living in the private rented sector said their home had problems with condensation, damp or mould, and the same was true for 36% of social tenants. These issues were less commonly reported by outright owners (17%) and mortgagors (27%).

In the last month, one-in-eight social tenants (13%) had not eaten for a whole day on three or more occasions because there wasn’t enough money for food, as had one-in-twelve private tenants (8%).

Over half of private renters say that their financial situation is making their mental health worse (52%), compared with nearly half of social renters (47%), two-in-five mortgagors (39%) and one-in-five outright homeowners (19%). Slightly lower – but still sizeable – proportions report that their finances are making their physical health worse: 42% of social renters, 39% of private renters, 27% of mortgagors and 16% of outright homeowners.

Related to this, a third of householders say that financial worries are causing them to sleep poorly at night (33%) – rising to 36% among mortgagors, 44% among private renters and 45% among social renters. 

Key findings

Mortgagors spend on average one-fifth (22%) of monthly take-home income on housing costs, this rises to a third of income (34%) among private renters and 29% for social renters. 

Single parent households in rented housing were more likely than other types of family to be in difficulty.

Over a third of private renters (37%) and two-thirds of social renters (67%) had seen their housing costs increase in the last six months as a result of their landlord or housing provider increasing the rent.

44% of households living in the private rented sector said their home had problems with condensation, damp or mould, and the same was true for 36% of social tenants.

About the research

This briefing uses data from the 8th Financial Fairness Tracker survey to explore these relationships, examining how household financial wellbeing varies by tenure; housing costs by tenure type; and households’ satisfaction with their accommodation and the quality of their homes. The survey took place between 24th April and 3rd May 2023 and the findings are based on responses from 5,766 householders.

About the Tracker

abrdn Financial Fairness Trust has commissioned a periodic cross-sectional survey to track the financial situation of UK households since the start of the coronavirus pandemic in early 2020. The latest wave of this survey – conducted in April-May 2023 – gives insight into the nation’s finances during the ongoing cost of living crisis. The findings are based on responses from 5,766 households about their income, payment of bills, borrowing, debt, savings and ability to pay for other essentials such as food. A team from the Personal Finance Research Centre at the University of Bristol analysed the respondent data collected from YouGov’s panel and produced these findings.