Tenants 'less exposed' to rising cost of living

Posted: 11 Jul 2008 13:57:10 GMT

New research has shown that those looking to rent property are better placed than homeowners to ride out the financial storm caused by the rising cost of living.

New research has shown that those looking to rent property are better placed than homeowners to ride out the financial storm caused by the rising cost of living.

The study carried out by financial comparison site MoneyExpert.com found that those who rent have lower outgoings than homeowners.

Whilst the research revealed that the average tenant spends just £133.90 per person per week on commodities, homeowners spend, on average, £216.60.

Sean Gardner, director of MoneyExpert.com, explained the benefits of renting: "Tenants are less exposed to [changes in their standard of living] - they don't have to remortgage; they won't suffer equity losses as house prices drop; and their per capita expenditure on basic commodities is lower than those of homeowners, too."

He continued: "This may explain why the housing market is struggling to recover - people realise that renting is cheaper now and aren't prepared to run the risk of being on the property ladder."

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