'Web of debt' leads to increase in rental arrears

11/02/2010

A survey from the Association of Residential Letting Agents (ARLA) has revealed that the number of tenants who are unable to meet their rental payments is increasing.

Although the last quarter saw a small decrease, 55 per cent of ARLA's members have reported an increase in tenants struggling to meet payments.

Ian Potter, operations manager of ARLA, said that a rise in unemployment is the most likely reason for the rising numbers.

As the Bank of England's Inflation Report suggests that Britain is not yet clear of the recession, a debt management scheme may be needed to help people struggling with job losses to organise their finances.

Mr Potter added: "The housing market looks increasingly buoyant with demand for rental properties having risen strongly since October. The problem of rental arrears will therefore persist and potentially grow in seriousness as tenants get caught in a web of debt."

Kevin Still, director of EuroDebt, commented: "Prioritising payments to your landlord or residential letting agent (RLA) are very important, along with council tax, utilities and any other expenditure that may put your home, family or livelihood at serious risk.

"EuroDebt works with landlords and RLAs to find amicable ways of helping tenants clear rent debts and also deal with credit card debts and other unsecured borrowing."

Posted by Jim Mead

EuroDebt offer a range of debt solutions. Contact us now to find the right one for you.

Tags; Housing Debt and Bills,

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