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Renter debt woes spell trouble for landlords

From Property Talk Live on December 11, 2013

The latest figures highlighted by The Money Charity indicate that increasing numbers are struggling to keep up with paying their rent each month.

Over the last few months there has been a significant increase in landlords issuing claims against their tenants in the county courts of England and Wales. The number of orders for possession, both outright and suspended, is also increasing with nearly 70% of claims resulting in some form of order.

Total UK personal debt has reached a new high, climbing above its September 2008 peak for the first time since the financial crisis. Unsecured debt as a whole and credit card debt both fell, so it was the rise in secured debt that created the uplift.

The concept of peaks and troughs in personal debt does need to be placed into the context of pre 2008. The recession has seen a steadying in borrowing, not a massive fall back, only time will tell whether the appetite for credit has permanently diminished or has merely been starved for a while.

Michelle Highman, CEO of The Money Charity said: “We know that many people feel trapped in the rental sector, unable to save the deposit required to purchase their own home. This is in part due to the high level of rents they are forced to pay. That increasing numbers are unable to even sustain their rental payments is particularly worrying.”

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Source: Property Talk Live