Despite a slight easing in inflation, the latest data from the Office for National Statistics (ONS) reveals that a significant number of people are still grappling with the challenge of keeping up with their monthly financial obligations.

In recent findings, it was reported that more than 4 in 10 adults (44%) currently making rent or mortgage payments have experienced an increase in their payment amounts over the past six months. Of those, 35% admitted they found it either somewhat or very difficult to manage these rising costs.

The strain appears to be more pronounced among younger adults, specifically those aged 16 to 29. Within this age group, 44% of respondents disclosed that affording their rent or mortgage has become a significant challenge.

Compounding these financial pressures, over one in five individuals (22%) reported that they had to rely on borrowing more money or using additional credit in the past month, a noticeable increase compared to a year ago.

Tom Cuppello, director of risk at Broadstone, commented: "Despite inflation coming down and a declining proportion of adults seeing marked increases in their day-to-day living costs, it is clear that the price rises over the past couple of years are still heavily impacting housing finances."

Cuppello further highlighted the growing burden on the borrowing market: "This is impacting the borrowing market where over one in five adults say they are borrowing more consumer credit than usual compared to a year ago."

He continued, "Over a third of adults are also struggling to meet rental or mortgage repayments. While this figure is no longer increasing month-on-month, it remains a concern following the latest Financial Conduct Authority (FCA) mortgage lending data, which revealed the value of outstanding mortgage balances with arrears increased by 4.2% through Q1 2024, to £21.3 billion, and is 44.5% higher than a year earlier."

Cuppello urged those in financial distress to seek assistance: "Consumers in difficulty should seek support from their lender should they be experiencing difficulties making repayments on their credit commitments. Lenders must also invest in their customer experience teams to ensure they are prepared to provide a high level of care for those experiencing financial issues."