'Optimism gap' shows renters more pessimistic than homeowners

Lloyds Bank says its new report shows that a 'gap between the optimism of buyers and renters is evident'.

Related topics:  Finance
Rozi Jones
29th August 2018
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"During this heightened period of economic uncertainty in the UK, it’s understandable that many will err on the side of caution"

Over half (51%) of homeowners feel positive about the current level of inflation, against just 36% of renters.

Homeowners are also more confident with the UK’s employment situation (60% vs 44%), the UK’s financial situation (43% vs 35%) and unsurprisingly the UK’s housing market (49% vs 30%).

Despite this, a clear majority (66%) feel their own finances are in order and 80% report having disposable income after bills and essentials have been paid for.

In fact, over two thirds (69%) of people feel they either have the same amount or more disposable income than they did at the start of 2018.

And it is millennials who are most likely to report the increase in spare change, with 30% of those between 18 and 24 experiencing an increase in disposable income since the start of the year (vs 27% of 25-34, 15% of 35-44 and 11% of 45-64).

Robin Bulloch, managing director of Lloyds Bank, said: “During this heightened period of economic uncertainty in the UK, it’s understandable that many will err on the side of caution when considering the future of the country’s finances.”

“Therefore, the optimism and resilience shown by people in their own finances is great to see. This demonstrates that people are really taking control of their finances and effectively managing their money.”

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