The financial stability of UK renters is under threat from unexpected illness, with nearly a third facing potential eviction.
- Many renters admit that illness would compromise their ability to pay rent, with only 14% confident of managing beyond three months.
- Research highlights renters’ lack of preparedness for financial shocks, with only 28% able to withstand prolonged illness.
- Borrowing from family, dipping into savings, and using short-term finance are common strategies renters might deploy.
- Despite the risks, few renters utilise insurance protection, raising concerns over rental security.
Recent findings from LifeSearch disclose that a significant portion of UK renters are perilously close to financial instability due to potential illness. Nearly one-third of renters confess they would struggle to meet rent obligations if illness deprived them of work income. With only 14% of renters feeling assured of continuing rent payments beyond a three-month period under such circumstances, the financial fragility is apparent.
The study, based on a survey of 1,000 renters, reveals a worrying lack of preparedness for financial upheavals. Only 28% believe they could endure a long-term work absence due to sickness. Alarmingly, just 22% feel capable of managing should they confront a serious illness, and a mere 14% could cope if a loved one fell gravely ill.
In response to such financial challenges, many renters would resort to informal safety nets. Borrowing from family members (36%), raiding cash savings (35%), or tapping into emergency funds (33%) are the primary methods anticipated. In stark contrast, just a minor segment of renters would rely on insurance or protection policies. More renters consider short-term finance (6%) over insurance claims (4%) as viable stop-gaps.
Ed Axon of LifeSearch articulates that while rental rights have gained focus amid rising rental prices, the underlying economic precarity for renters remains overlooked. He emphasises the transformative potential of insurance protection, yet highlights the dearth of awareness and uptake among renters. According to Axon, “Education is critical,” and meeting renters in preferred communication channels with tailored solutions is essential.
Partnerships with innovative entities are underway to forge accessible and appealing financial protection options for renters, aiming to enhance resilience against income loss. Axon anticipates these initiatives will offer a redefined form of insurance, more aligned with renters’ needs and financial realities.
The study underscores the urgent need for enhanced financial literacy and accessible protection solutions for renters.
