More than half (56%) of UK renters are ‘flathuggers’ who want to move but are staying put, which is slowing the rental market and damaging the economy, according to the latest data from flatsharing website.

Matt Hutchinson, Director of SpareRoom (pictured), says that stretched affordability means tenants are finding all their options are out of their budgets, while limited availability and fierce competition mean even those who could move are hesitating.

The problem is most acute for those over 40, with 61% unable to move compared to 52% of under 40s.

Record-high rents

Matt Hutchinson, director of SpareRoom (pictured), says: “A flexible rental market depends on tenants being able to move. Right now, record-high rents are keeping people in situ. Many are avoiding landlords or agents for fear of triggering a rent rise, and even those who could afford to relocate are staying put, prioritising stability over the stress of searching.”

Longer tenancies, fewer viewings, and competition for limited stock all slow turnover.”

Hutchinson adds: “This affects the market immediately. Longer tenancies, fewer viewings, and competition for limited stock all slow turnover. Agents are managing a quieter cycle while renters settle into longer stays.”

It also has a knock-on effect on the wider economy. The data shows that close to a fifth (19%) of renters said that, in the past two years, they’d turned down a job offer to avoid having to look for a new place to rent. Of these respondents, 51% had to forgo higher pay, 40% missed out on a better work-life balance, and 35% had to decline a promotion or another career progression opportunity.