Financial worries when it comes to accomodation isn’t only a problem for homeowners who are facing an increase in the number of house repossessions , as the number of renters who are facing arrears is on the increase across the UK.
13% of renters have fallen behind in their payments, and over half of these (7% ) who were questioned for an Axa survey said that they have gone into rent arrears during the past three months alone. This signifies that the credit crunch combined with the rise in cost of living means that more people need debt help.
Over a third of those who are renting say that they do so as they are unable to get accepted for a mortgage.
Any problems with debt could be passed onto the buy-to-let owners, as 95% of renters said that they were not protected against a sudden loss in earnings, such as if they were made redundant.
Axa managing director, Mike Keating, commented: “The cost of living is rising rapidly and average earnings are not keeping pace. It’s going to continue to be tough for many tenants.”