Tenants Turn To Debt Advice Charity for Help
UK Tenant Debts Mounting
The number of tenants contacting the Consumer Credit Counselling Service (CCCS) for advice on rental issues, including rent arrears and eviction, has increased dramatically over the last 18 months, according to the charity.
More than 10,000 tenants requested help during 2011.
27% more than for 2010 and it is thought a similar increase in numbers asking for help will also occur during 2012.
The vast majority of tenants contacting the charity for advice are reported to be, facing eviction or struggling to continue to make rental payments and the average owed by tenant callers stands at £760.
Even worse is that the same tenants are finding themselves with an average monthly income deficit of £82, indicating that some are struggling to cope with paying for their basic living expenses.
Statistics compiled by the CCCS during 2011 show that tenant callers experienced an average PRS rental increase of 2.4% over the course of the year, and with rents expected to increase further this year the charity is bracing itself for further fallout.
Delroy Corinaldi, the charity’s director of external affairs, commented on the figures saying; “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. For many people, another PRS rent hike will be the straw that breaks the camel’s back.”
Landlords who take the time and make the effort to protect their rental properties and the income that they generate need not despair!
If landlords complete comprehensive Tenant Referencing on all prospective applicants for their rental properties, then they are able to make use of Rent Guarantee insurance products to protect their rental incomes.
