Posts with tag: UK renters

Renters missing out on energy savings by not switching providers

Published On: October 10, 2016 at 10:15 am


Categories: Finance News

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Latest analysis has revealed that a number of UK renters could be missing out on savings totalling more than £1bn, due to lack of knowledge surrounding energy suppliers.

This lack of knowledge concerns having bills included in rental payments and failing to discuss matters with landlords , according to MoneySuperMarket.

Lack of information

The report examines energy provider switching habits among renters and shows that nearly half of UK renters were given no information on their provider at the start of their tenancy.

12% of tenants said that they feel their landlord is solely responsible for switching energy providers. This is greater amongst younger tenants, with 20% of those between 18-34 believing this to be the case.

One-tenth of renters said that they did not know who their energy provider is, with 6% saying they cannot locate their meter!

Renters missing out on energy savings by not switching providers

Renters missing out on energy savings by not switching providers


Rules outlined by Ofgem, the energy market regulator, state that if a tenant’s name is on the energy bill, they are entitled to switch provider themselves. Even if a landlord’s name appears on the bill, with the amount owning paid by the tenant in rental costs, it is worth discussing switching provider should potential savings be made.

Stephen Murray, energy expert at MoneySuperMarket said: ‘When it comes to energy switching in rented property, there is some confusion over who takes responsibility. In an ideal world, you would be provided with information on who the supplier is and the average bill size at the start of the agreement. Renters would then be encouraged to shop around for a cheaper tariff and make the switch. However, it seems this isn’t happening in far too many instances.’[1]

‘Ofgem has stated categorically that tenants are entitled to change supplier at any time if they are responsible for paying the energy bill, and should not be unreasonably prevented from doing this. There are savings of up to £3594 per household to be made by switching suppliers, so it pays to take control and shop around. But it’s always important to keep your landlord up to speed with any change you plan to make, Murray added.[1]





Home ownership slips further out of reach

Published On: October 7, 2014 at 2:55 pm


Categories: Finance News

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New research suggests that a growing number of British renters are sceptical about the chances of ever owning their own home.


According to the survey of more than 10,000 users by flat and house share site, 18% of renters believe that they will never be in a position to own their own home. This shows a rise from 12% in SpareRoom’s 2011 census, indicating that more people feel owning their own place is unlikely.[1]

A bleaker outlook seems present for people in their 40’s renting a property. 49% of people questioned in this age bracket said that they never expect to own their own place, having been priced out of the market. This is concerning, considering that people in this age bracket earn on average 17% more than the U.K average wage. It can be suggested that figures gauged from people of this age paint a more accurate picture of future home-ownership percentages, with them being at their maximum earning potential.[1]

Taking into account all-age groups questioned in the survey, 49% answered that it would be five-ten years before they would be in a position to consider entering the market. 23% said that they would need at least a decade.[1]

UK divide

The figures indicate that 49% of renters spend between 30-50% of their income on rent, with 23% spending in excess of 50%.[1]

A quarter of Londoners suggest that it will be at least ten years before they can get onto the property ladder, with escalating house prices and rising rent making it harder for them to save. In addition, in one four renting Londoners said that they paid more than 50% of their income on rent. That figure was almost matched by Scots (23%) with renters in the East Midlands (14%) least likely to spend that much of their income on rental payments.[1]

Londoners (37%) are also most likely to suggest that their rent is unaffordable, with renters in Yorkshire and Humberside (15%) least likely to complain. [1]

Slipping away

Average rents in London have risen to £691 per calendar month, with an average of 39% of Londoners’ take-home pay being spent on rent.[1]

Director of Matt Hutchinson said that the findings of their report pointed to a bleak future for would-be homeowners. Mr Hutchinson said, ‘for nearly one in five of Britain’s ever-growing population of renters, aspirations of home ownership are slipping away.’[1]

He went on to say that, ‘price rises seem to be unstoppable,’ and that, ‘prices for first-time buyers are rising faster than prices for owner-occupiers.’ Hutchinson believes that this, ‘coupled with rising rents eroding savings,’ means that it is, ‘hardly surprising that such a significant proportion of renters have resigned themselves to never owning their homes.’[1]

Hutchinson also issued a stark warning for the future of the property market, saying, ‘the reality is that many young professionals will never own their homes. Attitudes to renting for life will have to change as, like it or not, we are heading towards a European approach towards property, where so called ‘lifestyle tenants’ are the norm. Given the British love-affair with property ownership, this is going to be a major cultural change.’[1]