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More than 5.5m private renters could only afford 10 weeks off work
Rose St Louis
Protection Director, Scottish Widows
19th November 2024
More than one in three (35%) private renters1 in the UK - equivalent to 5.5m people2 - would run out of savings within 10 weeks if they were unable to work due to injury or illness.
New research from Scottish Widows found that a similar proportion of private renters (32%) said they would need to rely on financial support from loved ones and almost one in five (18%) would need to take out a loan if they couldn’t work. Nearly a fifth (16%) said they would have no choice but to move out of their current rental property if they weren’t able to work for a prolonged period.
Workplace absence due to injury or illness can result in a direct loss of earnings, impacting renters’ ability to make payments, as well as their wider financial security. More than half (57%) of renters polled said paying their bills was their biggest worry should they slip into financial insecurity or difficulty. Without work and guaranteed income, 47% said they’d be concerned about being able to keep a roof over their head (47%) and ensuring they can continue providing for their family (27%).
In the high-cost climate, being completely free of debt is a significant indicator for almost a third (29%) of renters to truly feel financially secure. Emergency saving pots (23%) or having financial support from loved ones in times of need (27%) were also high up on renters’ lists when thinking about what makes them feel financially secure. Sixteen percent admitted nothing would make them feel safe should they fall into any form of financial insecurity, highlighting just how insecure it can feel as a renter.
Rose St. Louis, Protection Director, Scottish Widows, commented: “Too many renters today have no form of financial protection in place should they need to take extended time off or away from work. Accidents or illness are tough enough, but adding in money worries can immediately make things far more stressful.
“More people are potentially being left exposed with no safety net as the number of those renting is rising. We need to consider what can be done to help inform and educate people on the importance of protecting themselves so they can focus on recovery and maintain their other financial commitments and outgoings. The industry must address how they can engage meaningfully with letting agents to bring tangible solutions to renters as this will ensure they not only secure their desired property but also create and can maintain some financial resilience for the future.”
Methodology
The research was conducted by Censuswide, among a sample of 4,043 general consumers over the age of 18 (including at least 1000 private renters and 1000 self-employed respondents). The data was collected between 17.04.2024 and 29.04.2024 Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
About Scottish Widows
Founded in 1815, Scottish Widows is part of Lloyds Banking Group, the UK’s largest digital bank and financial services group. With nearly £210bn assets under administration and six million customers, Scottish Widows’ award‐winning product range includes workplace and individual pensions, annuities, life cover, critical illness, income protection as well as savings and investment products. Customers can access our products and services through independent financial advisers, directly, and through all Lloyds Bank, Bank of Scotland and Halifax branches.
Notes
1 Please note* all reference to ‘renters’ refers to ‘private renters: those who rent private housing as their main residence.
2 Key findings from the FCA's Financial Lives May 2022 survey (PDF, 6MB)
According to the FCA, in 2022, around 30% of adults (15.8m) were renting the property they currently lived in.
35% of 15.8m= 5530000 or 5.5 million.
Media contacts:
Teamspirit
- Jess Riley, jriley@teamspirit.co.uk
- Ellie Pocock, epocock@teamspirit.co.uk
Scottish Widows
- Martyna Stepien-Nesbitt, Martyna.stepien@scottishwidows.co.uk
- Kimberley Hamilton, Kimberley.hamilton@scottishwidows.co.uk