Quarter Of Private-Renting Families Slipping Into 'Bad Debt'

One in four families renting homes in England is falling into hundreds of pounds of “bad debt” due to the cost of moving house, new findings show. Having to pay letting fees, removal van hires, cleaning costs and other requirements that come with moving properties has seen thousands of families taking out debt in the form of credit cards, overdraft, bank loans or payday loans, according to a report by housing charity Shelter. A total of 255,944 private renting families took on such debt the last time they moved, with the cost of moving home amounting to an average of £1,619 across England – and reaching £1,707 in London. Read more on the Independent website.

Millions Set Aside To Cover Welfare Costs

The UK’s largest landlords are stockpiling cash in preparation for next year’s onslaught of welfare reforms.  A snap survey by Inside Housing of large housing providers across the UK found the vast majority expect rent arrears to increase after reforms come into effect from next April.  Landlords said they expect arrears as a percentage of rental income to soar from an average of 3.7 per cent this year to more than 5 per cent by 2014/15.   Many landlords are setting aside far more cash for ‘bad debt’ to meet the expected increase in arrears.  Wolverhampton Homes, which manages 23,000 homes, expects its rent arrears to treble from 1.5 per cent this year to 4.5 per cent by 2014/15. It has doubled the amount set aside for ‘bad debt’ from £500,000 to £1 million and estimates spending £250,000 more a year on management costs. Read more on Inside Housing.