Her real estate tenants Britain feel insecure, at the same time that the trust of the household It shows timid signs of recovery, according to a Bloomberg Intelligence report highlighting the financial gap created by Britain’s dual housing market.
A BI survey in August found that British tenants were the majority of those who said they were very worried about their finances – a disproportionate percentage, as they represent about 1/3 of the UK households. Property tenants were more anxious than a year ago, while property owners were less anxious.
“Tenants tend to be less resistant to financial stress than property owners, and the gap of confidence has been expanded,” the authors of the survey wrote.
The findings are added to the evidence that the poorest have the greatest effects of the latest increase in inflation. Households with lower incomes – which are more likely to rent than buy a mortgage home – face not only the rapid increase in housing costs, but also the highest prices of food, energy and other basic goods. On the contrary, many property owners benefit from bank interest rates.
This emphasizes the challenge facing the government of Prime Minister Kir Starmer’s Labor to fulfill its promise of improving the standard of living.
There is no relief for tenants, who have seen rents raised by 30% on average over the last four years. Now, many owners are selling their property as a reaction to the stricter regulations, thereby reducing the number of homes available. There are also speculations that Finance Minister Rachel Reeves will target property owners in the budget of November 26, submitting renums on social security tax.
“Declaration of renting rents in recent months could be useful, although a potential rigorous rental tax policy could cause a new wave of increases,” analysts wrote.
Households’ weak confidence has burdened UK economy in recent yearsas consumers represent about 60% of gross domestic product.
On average, BI found that financial pressures were decreasing. 26% of Britons said they were worried about their financesreducing three units compared to February, according to a survey conducted by 1,000 people aged 25 and over.