New research from Axa has revealed rent arrears are becoming a concern for increasing numbers of private renters in the UK.
In the past three months, seven per cent of those questioned by YouGov, on behalf of the insurers, have gone into arrears.
Since this time last year, a total of 13 per cent have been unable to afford their rent.
Furthermore, over a third of people who are currently privately renting are doing so because mortgages are unavailable, according to Axa’s managing director of personal lines intermediary, Mike Keating.
He added that the debt management problems faced by tenants could be passed on to buy-to-let owners. The research also found 95 per cent of those renting privately had no protection against a sudden loss of income, for example redundancy.
“The cost of living is rising rapidly and average earnings are not keeping pace”, said Mr Keating, adding: “It’s going to continue to be tough for many tenants.”
In related news, Citizens Advice has said lenders should do more to stop borrowers’ homes being repossessed if they fall into arrears.