Economic climate 'tough for tenants' Published: 11/08/2008

People who rent property are finding it increasingly difficult to pay their monthly accommodation bills, according to a new report.

Recent research has revealed how difficult it has become for homeowners to meet their monthly mortgage repayments.

But this study shows that buy-to-let investors' tenants are also finding it difficult to pay their rent as the credit crunch takes its toll.

Around 13 per cent of renters are in arrears because they cannot afford to pay the rising rental bills.

The study showed that around seven per cent of these have only slipped into arrears in the past three months.

More than half of respondents said they feel concerned about being able to afford their rent in the future.

Worryingly, 95 per cent of those in privately rented property do not have any kind of income protection to help them out.

Mike Keating, managing director of Personal Lines Intermediary at AXA, said: "Our research shows that over a third of people privately renting are doing so because they can't get a mortgage at the moment. On the surface of it, this looks like the rental market should be buoyant. But if you consider that many of those renting may be struggling to make ends meet it's certainly not all good news for buy-to-let owners.

"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."

Search now for a letting agent  © Copyright.