Given the macroeconomic and political shocks of the past few years, many households across the UK and beyond are finding it increasingly difficult to make ends meet. COVID-19, the energy crisis, and geopolitical turbulence over the last decade have exacerbated everyday costs and resulted in household savings taking a major hit.
The ongoing cost of living crisis is pressuring the finances of renters and homeowners. 61% of British residents say their general living expenses have significantly increased in the past 12 months.
Renters are under significantly more financial stress than homeowners in the current market. With the average annual rental price increasing by 6% in the past 12 months alone, and typical household energy bills in 2024 at 59% higher than their 2022 levels, renters' pockets are shallower than ever.
Maintenance: The leading cause of strain on the rental market.
Maintenance problems are causing a lot of money trouble in the housing industry. One big issue is with the temperature in houses. In the UK, about 36% of renters complain about this. With energy costs at an all-time high, it’s making it harder for people to afford to keep their homes warm or cool.
Even worse, it takes an average of 45 days for these temperature problems to get fixed. And shockingly, only about half of these complaints actually get solved in full.
Other common worries include:
Security
Broken locks
Improper door closures
Water damage
Safety hazards
Faulty smoke alarms
All these issues not getting fixed quickly or properly means more stress and money problems for residents. In the UK, tenants ended up spending around £230 million last year fixing things that should've been the landlord's responsibility. That's a lot of money that could have been spent on other important things.
These problems don't just affect residents—they also hurt the economy. When houses aren't well-maintained, they lose value, landlords lose money, and relationships between tenants and landlords get strained. Fixing these problems needs everyone—government, landlords, and tenants—to work together to make sure homes are safe and affordable for everyone.
Consequences for both residents and landlords.
For residents, these problems come at a time when household savings are already stretched thin, compounded by rising rents across all core markets. Wasted time resolving issues, totalling 1.2 million days in 2023, adds to the frustration as renters believe these responsibilities should fall on their landlords.
1.2 million days wasted resolving issues in 2023.
Moreover, the consequences extend beyond financial strain, negatively affecting health and well-being. Issues like poor heating and damp and mould not only compromise comfort but also pose health risks. Additionally, the increased cost of living is a direct result of poor quality or faulty heating systems, leading to higher energy bills as more power and time are needed to fully heat a property.
Resident's dissatisfaction with the resolution of these issues is evident, with 23% expressing that the financial burden was unacceptable. This dissatisfaction also impacts landlords, as 48% of residents would not recommend their home to others, and 45% would not recommend their property manager. Such negative recommendations tarnish landlords' reputations and hinder their ability to retain tenants.
The lack of proactive management and issue resolution directly correlates with tenant dissatisfaction.
93% of residents prioritise responsiveness to reported maintenance issues as one of the leading reasons to move home.
Of UK residents who experienced poor responsiveness from their property manager in the past year, 42% are either likely or definitely planning to move in the next 12 months.
In contrast, only 28% of residents experiencing good responsiveness are considering a move. This 14-point difference underscores the critical role that effective property maintenance and communication play in retaining tenants and ensuring landlord success in the rental market.
Elevating resident experience with digitisation.
More effective property management and communication channels between landlords, property managers, and residents are needed to maintain the livability of homes. The current state of affairs highlights the urgent need for a more streamlined and efficient approach to property management.
A trend among younger residents is emerging: the preference for digitalisation and centralisation in property management functions. Surveys indicate that more than half (55%) of all residents in the UK express a desire for a dedicated app to report home issues to landlords and property managers. This preference is even more pronounced among those in their 30s, with a staggering 72% favouring digital platforms for communication.
Embracing digital solutions presents an opportunity to improve communication, enhance responsiveness, and ultimately, enhance the overall resident experience for both tenants and landlords.
To find out more about how Plentific unlocks new ways to facilitate more positive relationships between landlords, property managers and residents through technology, read our report in full here.
