Over half of private renters in the UK don’t have any financial protection

19 August 2024

There are approximately 15.8 million privately renting in the UK_¹. New research from Scottish Widows reveals 56% have no form of financial protection in place², despite a third needing to take extended time off work*.

The data showed that the average period that people have taken off due to illness or injury is almost five months. Separate research from Scottish Widows found 9% of people could last just one month in financially supporting themselves and their households if they were not able to work for an extended period of time³.

The impact of unexpected periods of time off work can be easily underestimated. FCA figures⁴ show that a third of renters have seen rent payments increase in the short-term, leading to wider financial difficulties. Absence due to injury or illness can lead to a loss of earnings hitting renters’ ability to make payments, as well as their wider financial security. Indeed, a significant 29% of private renters admit they didn’t receive any support from their employer during the time they needed to take off work.

Looking at why the levels of financial protection are low amongst UK renters there is a clear awareness gap. Almost a third (32%) have simply never thought about it and 20% believe they have no reason to have protection in place. Cost is also a barrier with 16% looking into it but assuming it will be out of their budget.

Protection insurance is most typically taken out when buying a property, but with the average age of a first-time buyer rising, now at 34 years old⁵, and people opting to rent for longer, it's vital more is done to support this growing cohort.

Among the 44% of renters across the UK who do have protection insurance in place, a fifth (20%) said they took it out because they had children and 15% explained they were prompted to take out insurance because someone close to them needed it, and they saw the benefit.

Rose St Louis, Protection Director, Scottish Widows, said: “Millions of renters are financially vulnerable, and this shouldn’t be ignored. Rising rents are taking up a higher proportion of people’s income, the cost-of-living squeeze hasn’t gone away and for many, financial pressures aren’t easing.

“Buying an insurance policy against serious illness or loss of income isn’t just for those who have children or have opted to buy a home and take out a mortgage. It’s for everyone to help ensure financial security, meet outgoings, and keep a roof over their heads at any stage of life.”

Download full press release (PDF, 219KB)

Notes

*The survey data was collected and analysed by Censuswide research. Total sample size was 4,043 UK adults including 1,000 self-employed and 1,000 private renter respondents. Fieldwork was undertaken between 17th and 29th April 2024. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).

Financial Conduct Authority (PDF, 6MB).
Please note* all reference to ‘renters’ refers to ‘private renters: those who rent private housing as their main residence.
Survey data was collected and analysed by YouGov plc. Total sample size was 2,059 adults. Fieldwork was undertaken between 2nd and 8th February 2024. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
Financial Conduct Authority (PDF, 6MB).
Gov.co.uk.

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 more than £210bn assets under administration and 6 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.