You are here: Home - Mortgages - Buy To Let - News -

Renters at higher risk of falling into debt spiral warns charity

0
Written by:
18/10/2012
The number of households in the UK that are heading into a spiral debt is on the increase according to debt advice charity, Money Advice Trust.

The figures highlight the extent to which rent price increases are affecting households across the UK.

The number of calls to the charity’s National Debtline service from people with rent arrears has significantly increased over the last five years. 

From January to August 2007, the free advice helpline received just over 6,000 calls from people with rent arrears, compared with 12,000 over the same period this year an increase of 99%.

Joanna Elson, Chief Executive of the Money Advice Trust said: “In the current environment it is clearly difficult for people to save the money for a deposit to buy a house and this has led to more people remaining in the renting market for longer.

“Where there is limited supply and greater demand, rising prices will always follow.

“However, rising rent prices are not only making it harder for people to save for a deposit, they’re also pushing more people in debt.

“This is a dangerous spiral; with increasing numbers of people entering the renting market, and fewer people leaving it, it is hard to see how the situation will improve.”

The charity said that the calls from people with rent arrears have increased 28% over the last two years, and nine% in the last 12 months.

Nearly ten per cent of all people calling National Debtline have rent arrears, compared to just six per cent in 2007 and eight per cent last year.

These figures also suggest that renters have faced a growing number of broader debt problems, with renters for the first time accounting for more than half of the total calls to National Debtline.

Elson advised: “Anyone struggling with their finances should seek free, impartial advice as soon as possible.

“Advice is available online through My Money Steps, over the phone at National Debtline, or face to face at your local Citizens Advice Bureau.

“If you are a struggling buy-to-let landlord, or if you are self-employed or the owner of a small business, you should contact Business Debtline.”

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2218097-us-federal-reserve
US foils Federal Reserve ‘bomb plot’

A man has been arrested for plotting to detonate a bomb in front of the Federal Reserve in New York.

Close