Rent arrears rise as SA households turn to credit to afford everyday essentials

South Africa’s rental market is showing fresh signs of strain, with new data from the TPN Residential Rental Monitor revealing that tenants making no rent payment rose from 6% in Q2 to 6.15% in Q3.

Old Mutual’s Thabo Hollo says the increase reflects the broader economic squeeze, as rising living costs force households to skip even essential expenses.

Hollo notes that rent, normally considered untouchable in a household budget, is increasingly being sacrificed, as people juggle competing financial pressures.

"Tenants tend to look at lines in their expenses that they can run towards, and rental, unfortunately, is one of those. Insurance is another one. So, each time there's economic pressure, and we're looking at the cost of living, it's slightly elevated at the moment – so it's just a matter of pressure on the people's pockets that's pushing them towards missing, unfortunately, key expenses in their lives."

At the same time, adds Hollo, more tenants are relying on credit for basic living expenses, with instalments now consuming nearly 28% of net income forcredit-active consumers.

He warns that many households are living beyond their means and turning to debt to maintain lifestyles they can no longer afford.

Hollo's advice to struggling tenants is blunt: scale down early, cut expenses to match income, and consider alternatives such as cheaper housing or switching from private to public transport.

"I understand that psychologically it might be tough to adjust to a new lifestyle, but it will be even worse if you don't cut down in terms of your expenses."

To listen to Old Mutual’s Thabo Hollo in conversation with 702 and CapeTalk's Africa Melane, click the audio below: