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Rental worries on the rise

Rental worries on the rise

Category: Mortgages

Updated: 29/09/2011
First Published: 29/09/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

There has been a huge rise in the number of people reporting problems with paying their rent since the beginning of the credit crunch in 2007.

Figures from National Debtline show that there has been an 84% increase in the number of people seeking help with rent arrears over the past four years.

At present, the rental market is growing by the month, with few people having the option to buy a home because of the challenge of getting together a big enough deposit.

Earlier this year, it was reported that the number of people renting in England has increased by around 40% since 2005.

And with relatively few new homes coming up for rent, demand has outstripped supply, leading to prices rising very quickly.

In July, it was reported that the average price of renting a home in the UK had risen above £700 a month for the first time ever.

"It is clear high rent costs are becoming more and more difficult for people to meet," said Joanna Elson OBE, chief executive of the Money Advice Trust.

"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.

"The chances of these renters being able to save the many thousands needed for a deposit are very slim indeed, which will only increase the demand for rental properties and lengthen the spiral into higher and higher rent costs."

If your financial situation is worrying you and you are struggling to pay your rent and bills every month, it could be worth seeking advice on how to deal with your debts.

Debt advice specialists such as the CCCS will offer free and impartial advice to those with debt problems.

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