Rent increases tip renters over financial edge

According to recent reports many people who are in rented accommodation are being pushed over the financial edge as a result of not only huge rental increases but also the soaring cost of living, which has impacted hugely on their finances and their ability to keep up with rent payments. According to one leading debt charity the number of people seeking help with regards to their rent payments has soared since the onset of the recession, rising by a massive 84 percent.

National Debtline has stated that the number of people approaching debt charities and advisors for help with regards to rent arrears on their homes is continuing to increase.

One of the reasons behind the rising number of people struggling with their debt is the fact that so many more people are now being pushed towards renting due to problems getting a mortgage, which means that there are more people in a position to fall into arrears with their rent. According to figures the number of people renting in England has increased by 40 percent since 2005 and the rise in demand for rental homes has pushed rental prices up to record highs, leaving renters having to deal with crippling rents as well as soaring living costs.

One industry official said: ‘A few years ago many people in today’s rent market would be planning on buying their first home, but now it seems they are struggling to even pay the rent. On top of those people who call National Debtline with specific problems in affording the rent, there will be even more who are cutting back sharply elsewhere to make sure they can cover rent payments. This in turn can lead to other debt problems, with credit cards, overdrafts and loans being relied upon to pay for food and other essentials.’

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