Debt on the Rise Because Tenants’ Incomes Have Been Squeezed

Above average CPI rises in food, fuel and transport in recent years have effectively reduced tenants’ incomes by one fifth in real terms. To keep their homes going, 1 in 4 rely on payday loan companies, doorstep money lenders, pawnbrokers or shops supplying household goods at ruinous rates of interest. Fifty-five per cent of indebted tenants owe more than £1,000, with 19 per cent owing over £6,000 and 14 per cent more than £10,000.  For one third, debts are unmanageable. One in five tenants always have to go without necessities, such as food and heating, to service debt. And debt is the third largest household expenditure item, after food and heating, taking 18p out of every pound. Read more on the NHF website.

NCHA Given £1m for Tenants in Debt Danger

Nottingham Community Housing Association has been awarded £1 million of lottery funding to support tenants who are at risk of falling into debt.  The Big Lottery funding scheme aims to make people more financially aware and confident in money management and make it easier for them to get loans or credit cards. It has allocated money to several East Midlands organisations and is backed by money-saving expert Martin Lewis, the National Housing Federation and Citizens Advice.  The association was awarded £999,449 to work with social housing tenants, particularly those aged 18 to 25, over a five-year period.  First-time tenants will receive a 'financial confidence health check' when they sign up for a tenancy to ensure they are aware of what they can afford and how to manage their money. They will receive details of financial services available.  Read more on the Nottingham Post website.