Posts with tag: high rents tenants in debt

A leading debt counselling charity has warned that thousands of tenants are being put in debt by spiralling rents.

Consumer Credit Counselling Services (CCCS) stated that in excess of 10,000 people contacted them for assistance with rent arrears during the last year. This was an increase of 27% on the last 12 months.[1] In total, 10, 246 people contact CCCS for assistance in 2011, in comparison to 8,074 in 2010.[2]

Last year’s figures suggest that on average, renters asking for assistance were £760 behind on their rent and around £82 behind on money needed to cover their monthly living expenses.[1]

 

Worst position

The research shows that private tenants are seemingly in the worst position. On average, they are £924 in rent arrears and have a monthly budget deficit of £145.[2] Those tenants in debt to housing associations were roughly £705 behind on payments, with those in arrears to local authorities owing £622 on average.[2]

Of all tenants that contacted the charity for help with their rent arrears, their rent had increased by an average of 2.4%.[1]

Growing concern

CCCS Director of External Affairs David Corinaldi, was very concerned by the findings. He said: “A very large number of people are struggling to keep up with their rent payments, and with rents near record highs, the problem is getting worse, not better.”

In addition, Corinaldi warned that with “household finances being squeezed as it is,” another “rent hike” will be “the straw that breaks the camel’s back.”[1]

Corinaldi’s concerns were echoed by Kay Boycott, Director of Communications, Policy and Campaigns at charity organisation Shelter. Boycott said that the figures “paint a worrying picture of the rising numbers of families who face a monthly battle to keep a roof over their head.”[2]

She went on to suggest: “Just one thing like an unexpected bill can be enough to tip people over the edge,” and ultimately “put their home at risk.”[2] Boycott also called for those concerned over rising rent to seek assistance, saying: “Getting advice early can help to stop things from spiraling out of control.”[2]

[1] http://old.lettingagenttoday.co.uk/news_features/Thousands-of-tenants-cant-pay-rent-says-debt-charity

[2] http://www.stepchange.org/portals/0/Documents/media/pressreleases/Press_release_High_rents_forcing_thousands_into_debt.pdf