Landlords suffer as tenant rent arrears continue to grow

21 March 2012 Categories: News

Landlords suffer as tenant rent arrears continue to grow

According to the Consumer Credit Counselling Service (CCCS) the average rent arrear now owed to private rental sector landlords stands at £924. The debt advice charity has seen the number of calls from tenants experiencing rental arrear problems rise by 55% over the last three years – a sure sign that households are struggling in the present economic climate.

Figures released by the charity this week show that over 10,000 tenants asked for advice during 2011, and that a growing number had ignored their financial problems for more than a year before seeking help.

Unemployment, the rising cost of everyday living and rent increases were the main reasons given for tenant rent arrears, although wage cuts, bad financial choices and increased interest rates on credit cards, loans and other forms of finance were also mentioned as factors.

Norman Lamb, Minister for Consumer Affairs commented on the latest figures saying, “The report shows that unmanageable debt is rising in all parts of society. It reminds us how vitally important it is to understand the needs of those who seek help, so that we can give them the right kind of help. We want people to be better informed and able to make good financial choices, taking back control of their money.”

While this sentiment is heartfelt towards struggling tenants it doesn’t help struggling landlords with their debt worries – a fact that wasn’t mentioned in the CCCS report.