Believe it or not when you rent your property?
Last year 67,000 households struggled with severe rent arrears across England and Wales and that figure is rising.
The Office of National Statistics has announced that the official figure for redundancies in 2017 was over 150,000.
The number of tenants evicted from their homes by bailiffs last year reached a record high, according to official figures for England and Wales showed that 42,728 households in rented accommodation were forcibly evicted by the courts.
With rising rents and static incomes just 62% of tenants only just marginally showed rent affordability when being referenced for a new home, Therefore, statistically, the majority of tenants entering a new tenancy agreement would not be able to afford to pay the rent if they had one hiccup in their household income. In 2017 unsecured consumer debt – mainly on credit cards, store cards, loans and overdrafts – peaked at 47% of household income.
With real incomes falling consumers are now funding large amounts of spending including mortgages and rents through unsecured borrowing. Annual growth in outstanding credit card debt has risen to 5.3%, month on month.
IN A NUTSHELL!
Average Rents rise 2.2% pa
UK Average Private Sector Pay Rises Are Still 0%
Higher Personal Debt Is Up 4.9% Yearly
Rising Food Prices As Uk Pound Slides
Property Rates and Utilities Rise 3%
Uk Redundancies Rise To 150,000 pa
Fuel Prices Rise 18% As Brent Crude Tops $70 a barrel
Bank Of England raises Interest Rates 0.25% and more to come
UK Inflation still at 3%
So! Let us ask you the question again then.
Is your tenant as safe as you think? The answer is you just do not know, in fact, your tenant has a greater chance than ever at not meeting their rent if they are affected by the economy conditions listed above. In fact, any one of so many day to day economic changes could affect your tenant’s cash flow and if it does it may affect their ability to pay their rent and that in turn will affect your income insomuch
“The rents they pay to you”
IT IS SO SIMPLE!