700,000 households miss rent or mortgage payments in April
Almost three-quarter of a million households missed their rent or mortgage payment in April, according to the latest Which? Consumer Insight Tracker.*
Housing bills have jumped significantly this year thanks to soaring mortgage rates for homeowners and landlords.
Here, we delve into the details of the latest findings and reveal what steps you can take if you are struggling.
Renters and mortgage holders miss payments
Missed payments were particularly high among renters surveyed in April, with one in 20 (5.2%) failing to pay their monthly bill to their landlord.
Survey results also show that 3.1% of mortgage holders missed payments last month.
By combining our study's results with Office for National Statistics data, an estimated 700,000 of the UK's 28.1 million households missed a rent or mortgage payment in April.
Costs shoot up in the space of a year
Tenants and homeowners have been hit hard by price increases in the past year.
Mortgage rates have jumped since the government's mini-budget in September. The average two-year fix in April 2022 was 2.86%, but it measured 5.35% in April 2023. So any homeowner remortgaging now will likely find their monthly bill will be significantly more expensive.
Tenants are also impacted by rising mortgage rates if buy-to-let landlords choose to pass on the increased costs. The Office for National Statistics (ONS) found one in five tenants in private rented properties it surveyed saw their monthly rent increase 10% or more between February 2022 and February 2023.
- Find out more: best mortgage rates for home movers and first-time buyers
Two million households miss or default on bills
Overall, two million households (7.3%) missed or defaulted on at least one mortgage, rent, loan, credit card or bill last month.
The figure is in line with the level seen at the same time last year, but higher than in April 2021 (6.5%) and April 2020 (5.2%). It does, however, mark a downturn from the 8.8% figure reported in March.
Bills remain the most common type of missed payment among the population as a whole, with 4.4% failing to pay up. Energy bills are most commonly missed (2%), followed by council tax (1.6%).
More than half make financial adjustments
Nearly six in 10 people had made at least one financial adjustment – such as cutting back on essentials, selling items or dipping into savings – in the past month to cover essential spending. This potentially equates to an estimated 16.6 million households.
This is consistent with the high adjustment level seen for the past year, and matches the level seen in April 2022, but is much higher than the 35% seen two years ago.
Source: Which? Consumer Insight Tracker. Online poll weighted to be nationally representative, approx 2,000 respondents per wave. Adjustments include: cutting back, dipping into savings, borrowing from friends and family, taking out credit cards or loans, selling items and using an overdraft.
- Find out more: how to spend less at the supermarket
What to do if you're struggling with payments
With the Bank of England predicted to increase the base rate again this Thursday, consumers will continue to face financial pressures this year.
Anyone missing or struggling to afford essential payments – such as rent or mortgage payments – should speak to their provider immediately for help.
Renters may be able to negotiate a compromise with their landlord - such as temporarily reducing payments - in order to enable them to keep living in the property.
Meanwhile, homeowners should speak with their mortgage provider as they may offer a payment holiday, an extension to the mortgage term to lower the monthly payment, or a temporary switch to interest-only repayments.
- Find out more: what to do if you can't pay your rent and what to do if you can't pay your mortgage
How Which? is helping with the cost of living crisis
Our experts have compiled the latest news and advice to help households cut costs and save money on bills this year.
Which? is calling on essential businesses – such as supermarkets, energy and telecoms providers – todo more to ensure customers are getting a good deal and help them avoid unecessary or unfair costs.
- Find out more: cost of living news and support
*The Consumer Insight Tracker is an online poll conducted monthly by Yonder on behalf of Which?. It is weighted to be nationally representative with approximately 2,000 respondents per wave.
