Cheaper living costs for tenants
Published: 02-Jul-2008
This article was brought to you by Rentman the premium property management system
Tenants are "less exposed" to financial pressures than homeowners, according to MoneyExpert.com.
Recent research by the financial advisory website indicates that homeowners spend 62 per cent more than the average tenant in residential lettings.
Sean Gardner, director of MoneyExpert.com, suggests that many could turn to the rental market to reduce their exposure to risk.
He said: "They [tenants] 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.
"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."
Figures from MoneyExpert show that the average tenant spends £133.90 per week on commodities, while a homeowner forks out over £100 more, spending £216.60.
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