Struggling Generation Rent Is Being Driven Into Debt

With a soaring number of tenants falling into financial difficulties as they battle increasing rental costs, charities have identified a “worrying trend” of escalating debt for those who are frozen out of home ownership. Debt charity StepChange says the number of renters contacting it with difficulty paying off debt in the four years to 2015 more than doubled, rising by 139%. The average sum owed is £10,829 each, made up of unsecured debts including overdrafts, loans, credit card debt and rent arrears – which have reached an all-time high of £922. Figures from separate findings by charity National Debtline show that the number of people seeking help with rent arrears doubled, to 14% of callers, over the past five years. Read more on the Observer website.

Rent Arrears the Fastest Growing UK Debt Problem

National debt advice charity the Money Advice Trust reports that rent arrears are now the fastest growing debt problem in the UK.  The number of calls to the charity’s National Debtline service from people with rent arrears has risen significantly since the economic crisis first hit in 2007. From January to October this year, the free advice helpline received nearly 20,000 calls for help from people with rent arrears, compared with just 8,000 over the same period in 2007 – an increase of 146 per cent. Calls from people with rent arrears have increased 37 per cent over the last two years, and 13 per cent in the last 12 months – more than any other debt type. Additionally, figures suggest renters have faced a growing number of broader debt problems, with renters now accounting for 57 per cent of total calls to National Debtline, compared to 43 per cent in 2010. Read more on the Money Advice Trust website.