Did you know the average person in the UK spends £826 on a week of sun, sea and sand each year? With many travel restrictions still in place, a trip abroad is looking increasingly unlikely this year and an opportunity arising to use these holiday savings towards rental costs.
However, with an average of 2.4 people to a household, the silver lining is potential savings of £1,652 for a week’s holiday for two. And our latest research revealed how these savings could be spent in the UK rental market.
With the current average UK rent sat at £959, tenants could financially tackle nearly two months of rental costs (1.7 months) with their would be holiday fund. This climbs to over three months in Wales and the North East (3.1) where the average rent is £539 and £533 respectively.
Tenants could also cover two months rent or more in Yorkshire and the Humber (2.7), the North West (2.7), Northern Ireland (2.6), the East and West Midlands (2.6 & 2.5), Scotland (2.2) and the South West (2.0) with the savings from not going on holiday.
Even in London the cost of the average holiday for two is enough to cover nearly a month’s rent. Once again this climbs to three months in Liverpool and two months or more in Swansea (2.9), Plymouth (2.7), Newport (2.7), Sheffield (2.6), Leicester (2.6), Nottingham (2.5), Newcastle (2.5), Belfast (2.3), Birmingham (2.3), Aberdeen (2.2), Cardiff (2.2), Leeds (2.1), Southampton (2.1). Manchester (2.0) and Portsmouth (2.0).
While the cost of rental deposit is higher than a month’s rent (five weeks rent), the average price paid for a holiday would still cover this cost comfortably across every region and major city, except for London and Oxford.
Co-founder of Ome, Matthew Hooker, commented:
“If there is one area of life as uncertain as the rental market at present, it’s the travel sector. Many of us will be familiar with a number of stories in the press, and on social media, of people left in limbo with regards to holidays they’ve already paid for, whether they will be able to actually go on them and if not, whether they will receive a full refund.
The silver lining of a summer spent in the UK is that those yet to book now have a sizeable chunk of money to help support them elsewhere. And for those trying to traverse the rental sector, it can go a long way in helping them, particularly when clubbing together as a household.
Even in London this cost can see tenants through almost a month of rental outgoings, or cover the majority of a rental deposit to secure a property. Of course, our advice would be to continue to address cash flow issues with deposit replacements offerings such as our Ome Deposit Replacement Scheme and keep your holiday funds for a rainy day, particularly with such financially uncertain times ahead for many.”