More than seven out of 10 tenants feel an increased sense of pressure during the festive period due to the financial strain of this time of year, research suggests.
The findings by Zero Deposit revealed 73% tenants feel this way during the festive period.
In addition, 65% struggle with the cost of living once they’ve covered the cost of rent and other outgoings, including utility bills.
Zero Deposit found that the average cost of rent in England currently stands at £1,348 per month.
On average, tenants also pay out £415 per month to cover council tax, energy and water bills and other monthly costs, such as broadband.
With the average monthly net income currently standing at £2,634, it means that 67% of a tenant’s monthly earnings go towards the cost of their rental property.
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Struggling to afford festive outgoings
As a result, 74% of renters surveyed by Zero Deposit say they struggle to afford other outgoings such as social occasions, leisure activities and other non-essential purchases.
Christmas can be a particularly difficult time of year as costs ramp up due to an increase in social occasions, the requirement of purchasing gifts and other increased spending on things such as food and drink.
Buying gifts for friends and family ranked top for putting them under the most pressure, with the expectation to spend more on food and drink and a busier social calendar also ranking highly.
So much so that 66% are planning to cut back on their usual Christmas spending habits this Christmas, with social occasions ranking as the top area where they will look to save.
Sam Reynolds, chief executive of Zero Deposit, said: “The rental market can be a tough place to be at the best of times, let alone during Christmas, with tenants required to pay a significant chunk of their monthly earnings simply to cover the costs associated with a rental home.
“However, this financial pressure can be heightened considerably over the festive period, as the costs associated with visiting loved ones, purchasing gifts, food and drink all start to mount up.
“Unfortunately, there’s no quick fix and the market imbalance between supply and demand has continued to push the cost of renting up over the last year.
“This trend looks set to continue in 2025, and so while this Christmas may be looking bleak for many tenants across the rental market, it could well get worse come this time next year.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Tenants feel festive financial pressure as they spend two-thirds of income on rent
