One in Three UK Renters Turning to Credit as Prices Soar
Renters in the UK are feeling the financial squeeze like never before. A new survey from debt charity StepChange reveals a shocking 38% of private tenants are using credit to pay their rent amid skyrocketing housing costs. The latest Office for National Statistics (ONS) data shows private rents jumped 5.5% year-on-year – the biggest rise since records began in 2016.
Renters Struggle More Than Homeowners
- 38% of private renters rely on credit to cover rent payments
- Only 20% of mortgage holders use credit for housing costs
- 27% of renters have raided their savings to afford rent
- 23% ration heating, electricity, or water to save money
Richard Lane, StepChange’s Director of External Affairs, warns: “Private renters are bearing the brunt of rising living costs more than homeowners. The government must act with legal reforms and stronger support so people can keep a roof over their heads without drowning in debt or facing eviction.”
Nationwide Throws £200 at Current Account Switchers
Looking for a new bank? Nationwide is offering a juicy £200 reward if you switch your current account to one of their three main accounts using the Current Account Switch Service. To qualify, you need to transfer at least two direct debits.
Switching is simple via Nationwide’s website or app. Plus, they’re launching a new online savings account for current account holders with a whopping 8% AER interest – you can stash away up to £200 each month.
Government Borrowing Hits £11.6 Billion in August
New ONS figures reveal government borrowing hit £11.6 billion last month, blowing past economists’ £11.1 billion forecast. This is £3.5 billion more than August last year and ranks as the fourth-highest August borrowing since records began in 1993.
Though higher than expected, it’s still below the £13 billion prediction from the Office for Budget Responsibility (OBR) earlier this year.
Government borrowing fuels important projects and economic stimulus. With the Autumn Statement looming, experts expect fresh spending plans targeting council budgets and school safety.
Year-to-date borrowing stands at £69.6 billion, up £19.3 billion from last year but £11.4 billion under OBR’s forecast.
