Renters feel the financial squeeze this Christmas: two-thirds of income goes on rent

It’s not just presents putting pressure on wallets this Christmas. For many renters, the cost of their home is swallowing up a huge chunk of their income.

Research by Zero Deposit shows that 73% of tenants are feeling the strain, with a staggering two-thirds of their monthly pay going towards rent.

The average rent in England is £1,348 per month. Add in £415 for energy, water and council tax bills and other monthly costs like broadband, and managing finances is getting tougher.

With an average monthly income of £2,634, renters are dedicating 67% of their pay to their homes alone.

Christmas makes it worse

Things are even harder at Christmas. Almost three-quarters (74%) of renters say they’re struggling to afford non-essentials, like social outings and leisure activities, with Christmas gifts being the biggest source of stress.

66% of renters plan to cut back on Christmas spending this year to cope.

As Sam Reynolds, chief executive of Zero Deposit, explains:

“The rental market can be a tough place to be at the best of times, let alone during Christmas, with tenants required to pay a significant chunk of their monthly earnings simply to cover the costs associated with a rental home."

What’s behind the squeeze?

The rental market is tough, with high demand and not enough properties available driving up costs. Reynolds warns that this trend looks set to continue into 2025, meaning next Christmas could be even harder for renters.

Getting help

If rising rent and bills are leaving you struggling, it’s not your fault. Prices are going up while wages aren’t keeping pace.

But there’s support out there.

Check you’re getting the benefits you’re entitled to with our free benefits calculator.

Get in touch with your local council to see what cost-of-living support they’re offering (all local councils in England have been given money through the household support fund to help those struggling).

And if you can no longer afford your debts, find out how we can help.

For information on your rights as a tenant, check out our guide on renting a private property – before you move in.