Thousands of households across the United Kingdom have defaulted on rent payments over the past year, as the ongoing cost of living crisis puts increased pressure on personal finances. According to Bluestone Mortgages, one in 20 tenants surveyed reported missing at least one housing payment in the past 12 months.
The situation is particularly dire for private renters, who are facing rising rents fuelled by higher demand. Data from Rightmove indicates that each property is now receiving an average of 17 inquiries from prospective tenants, highlighting the intense competition in the rental market.
This week, new figures from Rightmove revealed that average advertised rents outside of London have soared to a record high of £1,314 per calendar month (pcm), a 7% increase from last year’s £1,231 pcm. In London, the average rent has also hit a new peak of £2,661 pcm, a 4% rise from last year’s £2,567 pcm. Although the rate of rent growth has slowed since the peak of 16% in 2022, it remains a significant burden for many renters.
Bluestone Mortgages’ research underscores the broader financial challenges facing UK households. The report found that nearly one in four adults—over 5 million people—missed one or more payments in the past year, up from 18% in 2022. Of those, nearly two-thirds (64%) attributed their missed payments to the cost of living crisis.
Utility bills emerged as the most commonly missed payment, with 10% of respondents failing to pay on time, followed closely by credit card payments at 9%. The figures are even more stark for those with adverse credit histories: 40% missed utility bill payments and 35% missed credit card payments.
The top five missed payments reported by UK adults are as follows:
| Payment Type | % of UK Adults | % with Adverse Credit |
|---|---|---|
| Utility bill | 10% | 40% |
| Credit card payment | 9% | 35% |
| Mobile phone bill | 7% | 29% |
| Rent payment | 5% | 21% |
| Loan repayment | 4% | 18% |
Ryan Davies, strategy director at Bluestone Mortgages, noted the troubling trend: “Missed payments are no longer isolated events and are becoming part and parcel of people’s everyday lives as the squeeze on household and personal finances continues to take its toll. As a result, we expect to see a growing number of customers with adverse credit looking for financial support.”
The findings paint a stark picture of the economic challenges faced by many renters and highlight the need for continued attention to the cost of living crisis and its impact on housing stability.