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7.8 million struggling with rent and mortgage payments

January 8, 2013 | Landlord News  

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The statistics, provided by Shelter, the housing charity, reveal that almost a million people resorted to taking out a payday loan to cover the cost of their rent or mortgage in the previous Quarter.

The CEO at Shelter, said: “It’s shocking to think that so many families will be starting the new year with a huge weight hanging over them.”

The research was carried out by YouGov on behalf of the charity and showed that 2.8 million people were forced to use an unauthorised overdraft to find the funds for their rent or mortgage.

Private Landlords have again been reminded of the importance of carrying out adequate financial, credit history checks and financial fraud checks on potential tenants with the release of figures showing 7.8 million Brits are struggling with housing payments.

ARLA predict that rental rates will continue to rise in 2013, and therefore it is important that landlords ensure their local letting agents are conducting a thorough assessment of a potential tenant’s financial position and their capability to meet the payments is essential.

Let-Leeds recommends that Private landlords should ensure that their Letting Agent carries out the following as a minimum; 

  • Carry out a Credit check of their tenants as well as searching for previous inadequacies such as bankruptcy or IVA history
  • Ensure previous addresses on credit history match their application and that Landlord references can be provided at previous addresses
  • Ensure that Employment References can be provided and match wage slips and employemnt contracts with applications
  • Check Photographic ID and Bank Statements to assess Tenants affordability levels and how they use their Bank Accounts

 

 

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