30th
Apr 2015
PIMS NEW ARCHIVE National Debtline reports that rent arrears has become Britain’s biggest debt problem and many help lines, operated charities, are getting up to 500 calls every day from worried tenants who are having difficulties with paying their rent.
National Debtline is one of the UK's largest financial charities and says that the rise in calls since 2007 of tenants in trouble with rent arrears, has rocketed up to just under 150%.
Seven years ago its helpline had received approximately 8,000 calls a year from tenants falling behind in their rent. National Debtline now say that their figures shows that they are receiving 20,000 calls for help from tenants experiencing this issue.
In just over two years rent arrears calls from tenants has increased by 40% with a 13% rise alone in the last year.
There are a huge number of debt problems that tenants are suffering from and this makes up 60% of the calls that National Debtline receive, whereas in 2010 it was 45%.
Joanna Elson, chief executive of the Money Advice Trust, which runs National Debtline, said: “The long-term trend for rising rent prices is clear and its impact on the debt landscape is significant. Rent arrears are now the fastest growing debt problem we help people with and we are in danger of falling into a rent debt crisis.
“Housing costs are the most important household bill of all, and to see such increasing numbers of people falling behind on rent payments is indicative of how the cost of living squeeze has hit many families very hard since 2007. We hear from thousands of people every month about the difficult decisions they have to make just to hold their family finances together.”
She also said that those experiencing rent arrears problems are the most vulnerable members of the community who are facing eviction and could become homeless.
Elson added:“Anyone who cannot pay their rent needs free and impartial advice as soon as they can,
“If buy to let landlords are facing financial problems because their tenants have rent arrears, they can also get free advice from Business Debtline.”
Tenant in Rent Arrears Guide
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