R3
– the trade body for Insolvency Professionals
Press
Release
5
August 2013
One
third of 18-24 year olds blame rent for struggle to payday - 18-24 year olds feel pinch of high rents more than
any other generation
- Over 10% of young adults worried about their level
of debt due to rent arrears
One
third (34%) of young adults (aged 18-24) struggling to make it to payday
blame rent payments for their money problems, according to research by R3,
the insolvency trade body.
While
homeowners are benefitting from record-low interest rates, the difficulty
of getting onto the housing ladder and escalating rent payments appear to
be causing serious damage to the financial health of young adults.
By
comparison, fewer than one-in-five (18%) over-35s struggling to make it to
payday attribute this to rent payments. Just one-in-six (16%) adults
struggling to make it to payday blame their mortgage for their problems.
R3
president Liz Bingham says: “Without action to increase the supply of
housing or to curb rent increases, our youngest generation of adults – known
in some quarters as ‘Generation Rent’ – will continue to be forced to get
by with one hand tied behind its back.”
“Rent is a
fundamental expense for those not fortunate enough to own their own home,
but for many young adults it’s an expense too far.”
“The degree
to which 18-24 year olds struggle with rent payments dwarfs older age
groups’ rent concerns. It’s difficult to see how this generation – and
future generations – of young people can build a long-term financial
platform for themselves if so much of their income goes straight towards
their monthly rent bill.”
According
to the long-running survey of average rents in England and Wales from LSL
Property Services, average monthly rents in May 2013 (£737) were 3.5%
higher than May 2012. Over the same period, inflation was 2.7%, while,
according to the Office of National Statistics, three-month average UK
weekly earnings rose just 1.7% to £476.
R3’s latest
research also found that 11% of 18-24 year olds concerned about their
current level of debt are worried about their rent arrears.
Liz Bingham
says: “It is very concerning that a not insignificant proportion of young
adults are falling into debt just to put a roof over their heads. This is
not a sustainable state of affairs.”
Rent
concerns are most acute in London, where 35% of all those struggling to
make it to payday blame rent payments for their problems. This is followed
by the South East (29%).
Liz Bingham
says: “A lack of housing throughout the country, but particularly in the
capital, has maintained house prices well outside the reach of those on low
incomes. This is forcing people towards the rental market where heavy
demand is driving up rents.”
“With
thousands of young people caught between a housing market they can’t access
and a rental market they can’t afford, the pressure will soon end up on the
‘bank of mum and dad’ or social housing providers.”
Rent
payments are the third biggest cause of all GB adults’ financial problems,
with 22% of those surveyed by R3 blaming rent payments for their financial
difficulty. This is behind the rising cost of living (67%) and credit card
repayments (25%).
For
further information please contact:
Nick
Cosgrove, R3 Communications Manager
t: 020 7566
4215 m: 07917 422 485 e: nick.cosgrove@r3.org.uk
Notes to
editors: - Methodology: ComRes interviewed 2,060 GB adults
online between 31st May and 2nd June 2013. Data were weighted to be
demographically representative of all British adults aged 18+. ComRes
is a member of the British Polling Council and abides by its rules (www.britishpollingcouncil.org).
- Full data tables are available on the ComRes
website, www.comres.co.uk
- R3 is the trade body for Insolvency Professionals,
and is made up of 97% of the UK’s Insolvency Practitioners.
- R3 promotes best practice for professionals working
with financially troubled individuals and businesses; all R3 members
are regulated by one of nine recognised professional bodies.
- R3 stands for ‘Rescue, Recovery, and Renewal’ and
is also known as the Association of Business Recovery Professionals.
Website www.r3.org.uk
|