Business

Tenants face more debt problems, charity says

Wallet
Image caption More tenants have had their finances squeezed by stagnating earnings and rising rents

People who rent their homes are increasingly likely to be in arrears, a debt charity has said.

The Consumer Credit Counselling Service (CCCS) says it received just over 10,000 requests for help with rent arrears last year, a 27% rise on 2010.

The charity blamed this increase on the fact that rents have been rising while earnings have stagnated.

The average client with a rent problem was £760 in arrears, with the arrears of private tenants standing at £924.

Delroy Corinaldi of CCCS said: "A very large number of people are struggling to keep up with their rent payments - and with rents near record highs, the problem is getting worse, not better."

Some 12% of CCCS clients last year who rented their homes had problems paying their rent.

That was up from a 10% figure the year before.

The CCCS said housing association tenants who were struggling with their rents had average arrears of £705, while those behind with the rent on their council accommodation had average arrears of £622.

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