Renting tenants 'suffering from arrears'

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Renting tenants 'suffering from arrears'

Thu 11th Feb 2010

A high number of people who rent their properties are still struggling with arrears despite the improving economic climate, according to the Association of Residential Letting Agents (ARLA).

The industry body has reported that 55 per cent of its members have experienced a number of their clients struggling to find the money to meet their payments.

Although the figures have begun to drop as the economy returns to growth, they are still "worryingly high".

Ian Potter, operations manager of ARLA, said that unemployment has been a key factor in the amount of people who are finding it hard to pay their rent, with there being concerns that if unemployment increases even more people will fall into debt.

Tenants falling behind with payments can have serious consequences, as not only could the renter be evicted, the landlord may have to default on the mortgage and the home may be repossessed.

The news follows earlier findings from ARLA that high mortgage costs had forced some people into renting their property instead of buying.

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