Homeowners are far more likely to feel the pinch during a financial downturn than tenants.
Research from price comparison site Moneyexpert.com found that homeowners spend nearly two thirds (62%) more on commodities and services. While the average tenant spends £133.90 per person per week on such items, a homeowner spends £216.60.
That additional pressure on the household budget could prove significant as the cost of living in the UK today continues to soar: Analysts are predicting that energy bills could rise by as much as 40% this year alone, while food and petrol costs show no sign of abating either.
How the data was compiled
The price comparison site compared expenditure of households in 13 categories, including rent/mortgages, food, alcohol, clothing, energy and transport.
As the table below shows, the most marked contrast was on rent and mortgage payments, where homeowners spent over five times more than tenants.
Miscellaneous goods and service costs were also significantly higher for homeowners, spending £17.30 per person per week compared to just £7.70 for tenants.
| Commodity or Service | Weekly Per Capita Expenditure – Tenants | Weekly Per Capita Expenditure – Homeowners |
| Food & non-alcoholic drinks | £15.70 | £19.70 |
| Alcoholic drinks & tobacco | £5.10 | £4.60 |
| Clothing & footwear | £7.30 | £11.20 |
| Housing (net) fuel & power | £34.20 | £13.10 |
| Household goods & services | £6.50 | £14.70 |
| Health | £1.00 | £2.10 |
| Transport | £14.60 | £30.00 |
| Communication | £4.70 | £5.20 |
| Recreation & culture | £14.50 | £27.10 |
| Education | £1.70 | £3.80 |
| Restaurants & hotels | £11.50 | £17.60 |
| Miscellaneous goods & services | £7.70 | £17.30 |
| Rent/Mortgage payments | £9.40 | £50.30 |
| TOTAL | £133.90 | £216.60 |
Homeowners more exposed to the elements
“Much has been made of the dilapidated mortgage market and the effects of inflation, and it is true that homeowners are likely to suffer a real change in their standard of living as costs rise,” says MoneyExpert.com director Sean Gardner
“But tenants are less exposed to these factors – they don’t have to remortgage; they won’t suffer equity losses as house prices drop; and their per capita expenditure on basic commodities is lower than those of homeowners, too.
“This may explain why the housing market is struggling to recover – people realise that renting is cheaper now and aren’t prepared to run the risk of being on the property ladder.”
