In news which will surprise few Brits currently renting their home, private renters in the UK pay almost double the average European rent price.
Figures published 24th of June by the National Housing Federation show that, whilst the average monthly rent across Europe is 481 Euros, UK residents pay 902 Euros (about £730). Amidst a lack of confidence in the condition of UK housing, this news will not be received positively by the younger generation looking to start their own home.
Impacting Incomes
Further investigation was carried out by the National Housing Federation, the industry body representing social housing providers in England. They looked at the impact these prices had on income, and found that UK privately-rented households spend almost 40% of their monthly income on rent. This is in distinct comparison to households in Europe, who on average spend just 28%, and means that individuals and families in the UK supporting a household spend the equivalent of about 23 minutes of every working hour on rent alone.
Comparing this to just 17 minutes for private renters in the rest of Europe shows just how important it is for UK renters to have income protection insurance in place.
So why Income Protection Insurance?
Income protection provides a monthly benefit if you’re off work because of illness or injury. The lack of protection or sick benefits offered by employers these days means that many employees would have to rely on statutory sick pay to meet their everyday financial responsibilities. This government benefit, however, provides only £88.45 a week for up to a maximum of 28 weeks – a figure that amounts to just £353.80 a month, well below the UK’s average monthly rent of £730.
In comparison, an income protection insurance policy for a 30 year-old non-smoker would cost just £12.95 a month. This price would provide a benefit of £1,325 every month up until the age of 65 to keep up with the bills and support the household. Most importantly though, this type of protection really would offer a great deal of both safety and peace of mind for tenants looking to keep their homes.