Shelter Reveals Spending Strains Of Housing On Consumers
With the cost of living continuing to rise, a significant number of Britons are being forced to make spending sacrifices.
Such is the assertion of Shelter, where in the Breaking Point study carried out by YouGov on behalf of the charity it was revealed that about one in four - 6.3 million - are now spending less money on food in order to free up money to meet the rising cost of housing. Meanwhile, it was indicated that 2.2 million people have reduced their expenditure on clothes for their children, with around one in nine selling off personal possessions to help make ends meet. In addition, over nine million claimed that the amount of money which is spent on treats and luxury items for members of their family has fallen.
And although such measures may appear to be quite drastic, for some consumers they could be crucial as an estimated two million people state that meeting the various costs related to their home is a constant struggle for them, with 400,000 of these reported to be falling behind with rent or mortgage repayments. Shelter also indicated that almost a quarter of people said they were suffering from depression or stress because of problems with housing costs.
Following on from such difficulties in managing housing costs, it may also be possible that consumers are developing problems in coping with the other demands on their spending. Such areas could well include personal loan repayments, credit and store cards and utility bills.
It was revealed that at present one million British households are contributing over two-thirds of their annual salary towards housing, with those on lower incomes likely to be paying a higher proportion of their wages on this area of spending.
The study also showed a willingness among consumers to borrow money in order to meet housing costs. Some 4.1 million Britons were shown to have made use of a credit card over the last 12 months, with 2.8 million looking to some other form of borrowing.
Adam Sampson, chief executive of Shelter, said: “Our new report and campaign show just how difficult it is for ordinary families to cope with spiralling housing costs and how desperately unaffordable housing has become. People are going to extraordinary lengths to ensure they pay their rent or mortgage, but the effects of stress or depression, having to sell possessions or deprive the kids of treats can be devastating to family life.”
“The lack of affordable housing hasn’t just been felt by aspiring homeowners. People renting in the private and social sectors have also experienced the ill-effects of high housing costs,” he added.
For those consumers finding that they are struggling with various constraints on their spending, taking out a secured loan could be recommended. In getting a loan which is secured against the value of their property, borrowers could find that they can meet numerous financial commitments at once leaving them with an affordable repayment to make each month. This type of loan could be of particular assistance after a study by MoneyExpert in February revealed that over the preceding six-month period secured loans had become increasingly popular and more competitively-priced. The firm also stated that for those getting a secured loan of 15,000 pounds they can receive a rate of interest as low as 5.9 per cent, in comparison to the typical 8.44 per cent experienced on an unsecured loan of the same amount.
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