Arrears Warning For Landlords
Landlords have been urged to prepare themselves for a rise in defaults on rent repayments
Amid data showing that more and more tenants are struggling with housing costs.
According to insurer Axa, over the last 12 months 13 per cent of people in private rental accommodation have fallen behind with their rent - potentially leaving landlords out of pocket and unable to cover their own repayments on the property.
Worryingly, the study also found that 95 per cent of renters have not taken out any income payment protection insurance, meaning that if they were to lose their job or suffer an unforeseen financial blow they are likely to struggle to make their rent repayments.
Mike Keating, managing director of personal loans intermediary at Axa, said: "The cost of living is rising rapidly and average earnings are not keeping pace.
"And while rental rates appear to have dropped marginally in the last few months it's going to continue to be tough for many tenants."