Commuter savings can help tenants overcome the cost of renting
With many of us still restricted to working from home or on furlough, research by Ome shows the average UK commuter is benefitting to the tune of £66 a month that would otherwise be spent travelling to and from work.
Now that the market has reopened for business, tenants will be looking to move to rental properties having been restricted since the end of March. However, the financial barrier of securing a rental deposit at a cost of five weeks rent will have increased for those on furlough or unable to work.
The silver lining is that three months of furlough commuter cost savings could boost their finances by £199. While this won’t pay the rent, it will account for 18% of the average rental deposit of £1,107.
This help over the financial hurdle of renting is highest in the North East, where a three-month commuter saving of £212 could pay 35% of the average rental deposit.
The average commuter saving in the North West (25%), Yorkshire and Humber (24%), East Midlands (24%) and West Midlands (23%) would also chip away more than 20% of the average rental deposit.
This boost is predictably lowest in London, but with the average commuter cost accounting for 12% of the average rental deposit, it’s certainly better than nothing.
At local authority level, these cost savings become even more notable. The biggest boost is in Wales, with three months of commuter outgoings accounting for nearly half of the average rental deposit in Blaenau Gwent, while in England, this saving accounts for 39% of the average rental deposit in Middlesbrough and 32% in Dumfries and Galloway in Scotland.
Today, deposit alternative products such as Ome provide an alternative option to overcome the initial cost of a rental deposit. For the average UK tenant opting to take this route, three months of commuter cost savings could also help reduce ongoing rental costs, covering 24% of their first month’s rent.
Again, this is highest in the North East where three months of money saved working from home could cover 43% of your monthly rent, with London again the lowest at 15% of the average monthly rent.
You May Also Enjoy
UK First Time Buyers better off than many other global nations
Building Safety Regulator Reform
New anti-money laundering rules now in effect: what landlords need to know
What landlords need to know about the upcoming Renters Rights Bill
Mortgage approvals bounce back in May
