Arrears are the big fear for 2023 - downbeat survey results

The downbeat results of a survey by a finance company suggest that half of tenants are worried that they will be unable to afford their rent next year.

The study involved 2,000 UK adults - all tenants or landlords - and revealed that 58 per cent of tenants have seen their rent increased in 2022 and 49 per cent are worried that they will not be able to pay rent in 2023.

Some 48 per cent of landlords have had to increase rents due to rising interest rates and higher mortgage repayments but 56 per cent would allow flexibility on rental payments in the midst of the cost-of-living crisis. Unsurprisingly, perhaps 77 per cent of tenants say that more needs to be done to control rental prices in the UK

Paresh Raja - chief executive of MFS, which commissioned the survey - says: “It’s been a frenetic, challenging year, in which the base rate has risen by 2.9 per cent and inflation has hit 11.1 per cent. 

“Our new research shows that this economic turbulence has forced landlords to hike rents, and millions of people are worried if they will be able to afford rent next year. These are stark findings. However, our research also shows that the majority of landlords are sympathetic about the cost-of-living crisis; many have chosen to freeze rents, while most are willing to be flexible when it comes to payments.

“It seems clear that honest, frank conversations are needed to ensure renters are not subsumed by rising prices and landlords can afford to repay debt. Inflation and interest rates hurt different people in different ways – and while 2023 offers hope that both pressures will ease, we must ensure there is support for those who are struggling financially in the current climate.”