Housing debt fears on the rise

20% of people ‘less confident than six months ago about paying rent or mortgage’

Renters, single people and the “squeezed middle” generation are particularly likely to have lost confidence in recent months in their ability to cover their housing costs, a survey suggests.

The research was released as HSBC UK and housing charity Shelter announced a new partnership to support the financial health of people and communities during the cost-of living crisis and“help break the vicious circle of homelessness”.

One in five (20%) people feel less confident than they did six months ago about being able to pay their rent or mortgage on time for the rest of the year, according to a YouGov survey of more than 2,100 adults across the UK, commissioned to mark the new agreement between HSBC UK and Shelter.

The “squeezed middle” age group aged 35 to 54, who often have childcare responsibilities and may also be caring for elderly parents, were found to be the most likely to have lost confidence, with 28% feeling this way.

Single people who had never been married were also particularly likely to have lost confidence in their ability to pay for the roof over their head, with 25% saying this was the case, compared with 15% of people who were married or in a civil partnership.

Renters were also found to be particularly worried about making ends meet, with nearly two-thirds (65%) saying they often worry about how they are going to cover all costs, compared with 38% of homeowners.

Those living in rental accommodation were also more likely to have taken on additional debt than owners with a mortgage due to cost-ofliving increases, at 31% versus 21%.

More than a third (36%) of renters feel the cost-of-living crisis is negatively affecting their mental health, as do around one in six (16%) of those who own their home.

The partnership will help boost Shelter’s emergency helpline and webchat support. On average, more than 1,000 calls a day are made to Shelter’s emergency helpline.

According to the charity, eight in 10 callers to its emergency help line are already homeless or at imminent risk of it. Through the partnership, Shelter will work with people with lived experience to develop digital guidance and tools to build people’s financial resilience.

The partnership will also help train volunteers in financial services to deliver financial resilience advice, HSBC UK said.

Shelter will train more than 1,250 volunteers to deliver resilience training and signpost people to housing advice. This will help build financial resilience in local communities, reaching people in food banks and debt advice centres, for example.