"With more and more renters now susceptible to income shocks, LifeSearch is working closely with Canopy to help address this ominous renter resilience gap."
- Justin Harper, Chief Marketing Officer at LifeSearch
Of those surveyed (594 Canopy customers who rent), 74% didn’t have Income Protection (IP) to support them financially if they were to experience ill-health or injury. And yet, 47% said that rising financial pressures have left them worried about paying rent and bills.
When asked if they’d receive their full salary when unable to work due to ill-health or injury, only 36% said their employer would pay for more than three months. 16% said their employer wouldn’t pay them anything while 10% who were self-employed wouldn’t receive anything. Concerningly, over a third (35%) said they didn’t know how long they’d receive their full salary if they couldn’t work.
Canopy’s Q2 Rental Affordability Index, which highlights the financial pressures faced by renters, shows the average tenant in the UK spends more than a third (36%) of their monthly salary on rent – 19% spend half of their monthly earnings on keeping a roof over their head.
In light of this, when respondents were asked what would persuade them (either as an employee or self-employed professional) to invest in a protection policy, 52% said it’d be very useful if it contributed to their credit rating, supporting their financial track record.
“With property prices continuing to rise, lack of affordable housing for everyday families, and rising mortgages, the number of people in the UK rental market has seen a continued and notable increase. Almost 20% of UK homes are now privately rented and with rent now forming an increasingly growing proportion of people’s income, the prospect of financial shocks – particularly through accident or illness – are becoming increasingly worrisome for renters,” explained Justin Harper, Chief Marketing Officer at LifeSearch.
He said: “This is perhaps even more concerning for those with pressing financial commitments, including families and those caring for others. Although it can often be overlooked, it’s times like these that protection such as IP is becoming increasingly important to ensure individuals’ financial security through uncertain times.”
“With more and more renters now susceptible to income shocks, LifeSearch is working closely with Canopy to help address this ominous renter resilience gap,” Justin added.
Chris Hutchinson, CEO of Canopy, said: “The findings of our latest research underscore what we see as the next critical vulnerability within the UK rental sector. With rents at an all-time high and financial pressures mounting, the absence of IP for such a significant portion is alarming.
“IP isn’t just a safety net for renters that enables them to keep a roof over their heads, it’s also a vital assurance for landlords, ensuring consistent rental income even in times of tenant hardship,” he concluded.
