Tenants better equipped to face higher costs Published: 01/07/2008

New research by MoneyExpert.com suggests that tenants are better off at present than property owners with mortgages.

The study reveals that the average renter spends less on services and commodities than the typical home loan borrower.

Expenditure on everyday goods such as food, clothing, transport, as well as bills and leisure, totals £133.90 for the average inhabitant of a rental property.

This compares to £216.60 for a regular homeowner paying for the same items, the figures show, after factoring in typical mortgage costs as opposed to rent.

According to MoneyExpert.com director Sean Gardner, higher living costs mean that "homeowners are likely to suffer a real change in their standard of living".

"But," he continued, "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."

The average expenditure on rent per capita for a tenant is just £9.40 per week, the financial advice site calculates, whereas the average homeowner will spend £50.30 per week on their mortgage.

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