A growing number of tenants are turning to the GoFundMe crowdfunding platform to help pay their rent.

The global company reports that it has seen a marked rise in the number of posts wanting help with essential bills since the start of this year, with 30 new posts a day in the UK asking for money to pay bills or rent. There are now 1,500 such UK posts on the site, up 10% on this time last year.

Radio 4’s You and Yours programme heard that most people use GoFundMe to raise money from friends and family, with 80% of funds coming this way. Global chief executive Tim Cadogan says there has been a similar rise in people appealing for help with essential bills across 20 countries.

“We see the same trend, as the cost of living has gone up, particularly rent and utilities, and people have gaps so need help from friends, family and neighbours,” he adds.

Banking

Cadogan explains that the site charges banking fees of 2.9% along with 25p for each donation. Although users don’t need to post proof of need, the firm follows up on every complaint while all money goes through third party banking.

London-based renter Kay told the programme she had felt very nervous and exposed about putting her request on GoFundMe, but that it meant she could ask more people for help.

Health

“I had health problems and wasn’t working,” says Kay. “As a single parent with a disabled child I was using my savings and waiting for a decision on whether I could receive benefits and from charities, so did GoFundMe to plug the gap. Most of the people who provided support were people I knew, or old friends and I raised £2,376 - receiving £2,300 - which paid my rent for one month.”

Zoopla reports that 40% of homes for sale on Zoopla are currently cheaper to buy with a mortgage than the cost of renting locally - assuming a 20% deposit – up from 25% last year. Lenders are typically checking that borrowers can afford a higher mortgage rate of 6.5%, which is lower than 8.5% a year ago.

In some regions - the North East, North West and Scotland – more than half of homes for sale are cheaper to rent than buying at this stress rate.

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