Arrears levels soar among renters

31/03/2009

More and more tenants are falling behind on their rents and putting their landlords under financial pressure as the recession grinds on.

A new report laid bare the extent of the problem yesterday, showing that a total of 37 per cent of landlords have renters currently in arrears - with 44 per cent having experienced the problem at some point over the last six months.

The survey, from the National Landlords Association (NLA), also showed that these rent problems were having a knock-on effect on landlords' mortgage repayments for their properties.

David Salusbury, chairman of the group, said: "This is becoming a serious problem for landlords all over the UK."

EuroDebt director Kevin Still added: "It should be the case that paying the rent, council tax and utility bills should be a priority for all tenants, however, as a Debt Management Company, we find that many tenants have been paying their unsecured creditors ahead of the rent or rent arrears.

"We have started to work through our partners with hundreds of residential lettings agents and landlords to deliver debt advice and debt management services that allow the tenant to prioritise their payments and for the letting agent or landlord to recover the rent arrears without cost and avoid having to use the threat of eviction as primary collection tool. EuroDebt collect the rent arrears as part of their debt management service, ensuring repayments to landlords and agents start immediately."

The NLA's report comes in the wake of a new campaign aimed at protecting tenants better, launched by charities last week.

It is aimed at changing the law so that renters are no longer at risk of losing their home without notice if their landlord defaults on their mortgage payments.

Tags; Budgeting Advice, Credit Card Lifestyle, Recent Graduate Debt,

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