Home owners, more so than renters, have experienced larger decreases in household income over the past 12 months, research from Lloyds Bank has shown.
Of those who claim their household income has deteriorated, nearly 1 in 4 (23%) homeowners believe it has reduced by more than 20%, whereas only 16% of renters report reductions of the same proportion.
It comes as Lloyds revealed that only 35% of working consumers have seen household income increase over the last 12 months.
Analysis also shows a3% year-on-year growth in essential spending putting pressure on outgoings whilst consumer sentiment remains negative, despite inflation falling to 2.7% in February.
Robin Bulloch, managing director of Lloyds Bank, said: “Whilst consumers will have been pleased to see the gap closing between inflation and wage growth in February, our research shows that UK households still feel they have been under real financial pressure in 2018.
“Inflation remains high, and people are having to make their money go further as a result of muted household income growth. We would encourage consumers to actively manage their finances and keep an eye on their discretionary spending.”