Renter repercussions: almost two thirds of renters say mental and physical health is suffering due to increasing financial stress

With the average cost of rent in the UK rising by a record 9% in the last 12 months1, new insights2 from St. James’s Place (SJP) highlight the financial difficulties UK private renters are battling, with almost two thirds experiencing a deterioration in their mental and physical wellbeing as a result.

Against the economic backdrop of the last year, SJP reports that a quarter (24%) of those who rent from a private landlord say their financial situation has significantly worsened. In comparison, just 9% of those who own their home outright say the same, as do 15% of those with a mortgage. As such, almost half of renters (47%) say they do not feel financially resilient3 compared to 17% of outright homeowners and 35% of mortgage holders.

The distinct lack of financial resilience among renters is stark, with two in five (40%) stating they would not be able to personally cover an unexpected bill of ￡500, while just 6% of outright homeowners and 17% of mortgage holders saying they would face the same struggle.

Financial strain impacting renters’ mental and physical wellbeing

SJP’s Financial Health research, conducted among 6,000 adults across the UK, also reveals the impact that renters’ financial position is having on their health and wellbeing. More than three in five (62%) report their mental health has suffered in the last year because of their financial situation. A third (34%) say their mood has been affected, a quarter (25%) are losing sleep, while 24% have become anxious about going out or seeing anyone else due to financial worries.

A further 24% have considered taking time off work due to the stress and 15% have found their relationship with loved ones has been affected. Worryingly, over a fifth (22%) have suffered from stress-related conditions in the last 12 months and 19% have experienced depression.

Persistently high interest rates over the last year or so has also affected mortgage holders’ mental wellbeing, with more than half (52%) saying their mental health has suffered, considerably more than those who own their home outright (28%).

Economic environment causing physical health to deteriorate – with renters suffering most

SJP’s research also shows that financial struggles have cause physical health to deteriorate in the last year, with renters worst impacted again. Nearly two thirds of renters (63%), and 50% of mortgage holders report their physical health has suffered, compared to 28% of outright property owners. This includes:

• Financial worries impacting physical appearance, resulting in hair loss, more grey hairs and an overall sense of ageing (affecting 25% of renters, 22% of mortgage holders, but just 10% of outright homeowners)
• Being forced to cook and buy cheaper, less healthy food (28% of renters, 19% of mortgage holders, 11% of outright homeowners)
• Weight issues (14% of renters, 9% of mortgage holders, 6% of outright homeowners)

Alexandra Loydon, Director of Engagement and Consultancy at St. James’s Place, says:

“Economic conditions have been challenging over the last couple of years, and high interest rates have had a significant effect on many people ?in the UK, with substantial numbers experiencing the impact of increases in rental and mortgage payments. Renters feel in a particularly precarious financial position, which in turn could lead to a struggle to afford any additional bills that come their way.

"SJP's research highlights the profound, ongoing and worrying impact this is having on people's lifestyles, physical wellbeing, and mental health, with more than three in five reporting struggles. The outlook for 2024 remains mixed, and it’s likely that renters – and to a lesser extent homeowners with a mortgage– will continue to feel the financial strain.

"It’s?therefore important for people to take?as many?steps?as?they can?to help with their financial situation,?in order to?try to take care of their physical and mental wellbeing?too.?Seeking advice and support and having a?financial?plan?in place?will help?people to?take?back some control of their finances, as well as?maximise?their ability to?build financial?resilience.?Speaking about finances?to others?can be a sensitive topic for many;?however,?it’s important?people shouldn’t feel?alone and?are able to share their concerns, so that they can access help when and where they need it.

“Seeking advice from debt advice charities, financial advisers (who can provide guidance on budgeting and saving) and mental health professionals?can have a really positive impact and provide vital support?and reassurance?through?difficult periods.”

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Notes to Editors

1 – According to ONS Private rent and house prices, UK: March 2024

2 - Research conducted for St. James’s Place by Opinium, among 6,000 UK adults between 16th – 25th October 2023. All results are weighted to nationally representative criteria.

3 - Financial resilience is the ability to cope financially when faced with a sudden fall in income or unavoidable rise in expenditure.