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1.3 Million Households Struggling with their Finances

November 26th, 2009

Charities urge the Government to help low-income tenants as researches showed that 1.3 million low-income households are currently struggling with their finances.

Reports revealed that 1.3 million low-income households are struggling with their finances. Shelter and the Money Advice Trust (MAT) further surveyed 745 tenants with income less than £20,000 (£25,000 in London), with 90% of those households currently in financial trouble – compared to 56% in 2006.

Of those 90% of households in financial trouble, nearly 50% have not received any advice in the past year – leading to the two organisations urging the Government to offer support, advice and services in the private rented sector. Moreover, 60% of the households in receipt of housing benefits received allowances less than their rental costs – leaving one-fourth of those having to make up shortfalls of more than £49 per week. Furthermore, the survey reported that 4 out of 10 people admitted debt is affecting their health.

On the other hand, the two charities questioned 440 landlords in the survey – which reported that 50% of the landlords had experienced tenants who were in arrears and 23% expected to have to evict people falling behind on their rent. To safeguard themselves from rental arrears, 30% of landlords are now requesting a bigger sum of deposits from their tenants.

Landlords should protect themselves against rental arrears with Legal Expenses and Rent Guarantee Insurance. please visit Discount Landlord Insurance.

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