An estimated 700,000 households in the UK missed a housing payment in the last month, new research by Which? has indicated.

In response to the findings, Which? has called on essential businesses to do more to support people through the cost of living crisis.

Missed housing payments were particularly high in April among people renting a property, with 5.2% of renters surveyed missing a payment in the last month. Which? suggested that missed rent payments have stayed at a high rate throughout the last year, suggesting that many are struggling to keep a roof over their head.

The research, based on an online study of 2,000 people, also showed that a significant number of people also missed mortgage payments in the last month – 3.1% of mortgage holders surveyed – as interest rates have continued to climb.

Which? estimated that between 1.8% and 3.2% of households missed or defaulted on a housing payment – mortgage or rent – in the last month, with an average estimate of 2.5%. Based on the survey and an estimate from the Office for National Statistics (ONS) for the number of households in 2020 of 28.1 million, this scales up to between 510,000 and 890,000 households missing a housing payment in the last month – with an average estimate of 700,000.

Director of policy and advocacy at Which?, Rocio Concha, commented: “It’s very worrying that so many households are missing housing payments. We’d encourage anyone who’s struggling to seek free debt advice and reach out to their mortgage provider or landlord for help.”

Overall, two million households missed or defaulted on at least one mortgage, rent, loan, credit card or bill in April. The 7.3% missed payment rate observed is in line with the level seen at the same time last year, but higher than in April 2021 (6.5%) and April 2020 (5.2%).

Bills have remained the most common type of missed payment among the population as a whole (4.4%) – with energy bills most commonly missed (2%), followed by council tax (1.6%).

With financial experts expecting the Bank of England to raise interest rates again next Thursday, Which? also warned that consumers will continue to face financial pressures throughout 2023.

Which? has launched a campaign calling on essential businesses – including energy firms, broadband providers and supermarkets – to do more to help struggling consumers and ensure they are providing value for money.

“As so many people face financial hardship, Which? is calling on businesses in essential sectors like food, energy and telecoms providers to do more to help customers get a good deal and avoid unnecessary or unfair costs and charges during this crisis,” Concha added.

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