Due to essential maintenance, it won't be possible to log into your account on Sunday morning (14 April). We're sorry for any inconvenience and will complete the work as quickly as possible.

OneFamily

Housing cost worries soaring among young renters

Posted in: Corporate

Concerns around income, the property market and the cost of living are on the rise among young renters, according to new research by financial mutual, OneFamily.

  • In the UK, 68% of renters aged 18-40 are anxious about their income, up from 60% in October 2023
  • Almost four in five (77%) are worried about the cost of living, compared to just under half (47%) in October 2023
  • 71% are concerned about the property market and the cost of housing, compared to 51% in October 2023
  • Worries about the cost of housing are particularly high among people who are renting from a private landlord (80%), compared to those renting from a local or housing association (53%)

Concerns around income, the property market and the cost of living are soaring among young renters (those aged 18 to 40), according to new research by financial mutual, OneFamily.

The findings show 68% of young renters are worried about their income, up from 60% last autumn.

The research involved two surveys, the first in October 2023, which asked people aged 18-40 about a number of topics including their average salary, cost of rent or mortgage and overall quality of life. The second, in February 2024, asked the same questions and shows how financial attitudes and concerns have changed in that time.

Over three quarters (77%) of renters aged 18-40 are concerned about the cost of living, compared to just under half (47%) in October 2023.

When asked about the property market, 71% are worried about the cost of housing, compared to 51% last year.

Those who are renting privately are the most anxious about the cost of housing and the property market (80%), compared to those renting from a local authority or housing association (53%).

The research comes as a report by the ONS suggested annual private rental prices increased by 6.2% in the 12 months to January 2024, unchanged for the second consecutive month [1].

Michelle Steele, a 44-year-old mum renting in Southeast London is saving into a OneFamily lifetime ISA to buy a house but has had to cut down on her monthly investments due to rising costs.

She said, “I opened my lifetime ISA to start saving for a house, to put down some roots and have a nice home to continue to raise my son in. I have found that the cost-of-living crisis has made it much harder to put money aside each month – we’re all living in a very difficult economic climate. I was saving £100 from my salary, but I had to reduce it to £25 each month because my food costs have gone up from £50 each week to £150 and I have a growing teenager to feed. I don’t shop extravagantly, mostly Aldi or Lidl, and definitely not the expensive brands.”

The Lifetime ISA is a product set up by the UK government to help people buy their first home or save for retirement. The government tops up lifetime ISAs by 25%, so for every £100 saved, an extra £25 will be added on top. The maximum saving limit into a lifetime ISA per year is £4,000, which equates to an annual bonus of up to £1,000.

Jackie Davies, Head of Customer Service and Direct Sales at OneFamily, said, “It’s a worrying time for renters, with prices of everyday items still remaining high due to the cost-of-living crisis. For those that want to get on the property ladder, it is challenging to save every month due to these high costs, particularly as rents have increased over the last year. But the lifetime ISA can help boost your savings, as the government tops up the savings by 25%, so every time you pay in, a bonus is added.”

-ENDS-

Notes to Editors

The data from October 2023 is based on research which was conducted by Opinium, on behalf of OneFamily, 25th September – 9th October 2023, among a sample of 2,000 UK adults aged between 18-40. The data has been weighted to be nationally representative of this group.

The data from February 2024 is based on research which was conducted by Opinium, on behalf of OneFamily, 2nd February – 6th February 2024, among a sample of 2,000 UK adults (including 727 UK adults aged between 18-40). The data has been weighted to be nationally representative of the UK population.

ONS

1. ONS data: Index of Private Housing Rental Prices, UK: January 2023

About OneFamily

OneFamily is a member-owned financial services company that offers lifetime ISAs, lifetime mortgages, junior ISAs, child trust funds, bonds, over 50s life cover along with life insurance and critical illness cover under the Beagle Street brand.

We have over 45 years’ experience of being a trusted provider of financial solutions, with nearly 2 million customers and over £5.5 billion in funds under management at the end of 2022.

We are the UK’s biggest child trust fund provider, holding over 25% of the market.