Cash-strapped tenants are falling behind with rents

Tenants are struggling with their finances and increasing numbers are falling behind with buy to let rents every month.

Debt advisers The Money Charity explained this financial hardship has triggered more landlords seeking possession orders from the courts.

Research by the charity shows the number of outright and suspended orders has increased by 70% in recent months.

The charity suggests that the high cost of renting a private home is a contributory factor to the overall amount of personal debt reaching a new high ' peaking above the previous record in September 2008 when the financial crisis hit.

Analysis of the figures shows that although unsecured debt, like the amount owed on store cards and credit cards is falling away, secured debt as loans and mortgages against property is rising as homeowners release capital to pay their way.

According to the charity, the latest debt figures show:

' £54,124: average household debt (including mortgages) in October, up from £54,066 in September
' £6,004: average household debt (excluding mortgages) in October, down from £6,010 in September
' £162 million of interest was paid every day on personal debt in October
' £1.527 billion: daily value of all plastic card purchases in September
' 1,359 people were made redundant every day between July and September
' 890,000 people had been unemployed for over a year between July and September
' Every 5 minutes 3 seconds someone was declared bankrupt or insolvent during Q3 2013
' £1.430 trillion was the value of outstanding personal debt at the end of October, up from the same period last year
' £65.23: the cost to fill a 50 litre tank with unleaded petrol in November
' The government borrowed an estimated £3,117 every second during October

Money Charity CEO Michelle Highman said: “We know that many people feel trapped in the rental sector, unable to save the deposit required to purchase their own home. This is in part due to the high level of rents they are forced to pay. That increasing numbers are unable to even sustain their rental payments is particularly worrying.?

The article Cash-strapped tenants are falling behind with rents appeared first on LandlordZONE.

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Article courtesy of LandlordZONE
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