Tough Times Ahead for Renters as Rents Rocket

A rise in possessions by landlords as demand for rental property is exceeding supply.

Debt solutions provider and DEMSA member, Atlantic Financial Management is warning of a rise in possessions by landlords as demand for rental property is exceeding supply, pushing up rental charges when rising day to day living costs are already driving families into debt. The IMF announced recently that families could be £1,500 worse off over the next five years, and the British economic recovery will be ‘bumpy and uneven.’ Not good news for families already struggling.

"... demand has pushed up rent across the country ... "

Kevin Still, Director of Atlantic says, “A recent report from The Association of Residential Lettings Agents (ARLA) found that there are currently more prospective tenants than properties available. The stagnant property market is making renting the only option for a growing number of individuals and families, with little option but to pay the higher rents now being demanded. The average monthly rent in the UK rose to its highest ever level in the second quarter of 2011*, to £867. Not only is it harder to find a property, but demand has pushed up rent across the country and many existing tenants are struggling to pay.

“Rent increases are yet another financial burden for families at a time when living costs have already climbed steeply. As the tough times continue across the board, those already in financial difficulty will struggle most. It is now more important than ever to manage any existing debts effectively to avoid potentially serious knock-on effects such as the devastating possibility of being evicted from your home.”

Landlords and Residential Letting Agents need to work with debt advisors to find the right debt solution for their tenants

“At Atlantic one of our priorities is to protect a client’s tenancy and ensure that a realistic repayment arrangement is negotiated to clear rent arrears as part of a holistic debt solution. Landlords and Residential Letting Agents need to work with debt advisors to find the right debt solution for their tenants, rather than just start proceedings to evict, which can be very expensive and reduce rental income.”

Atlantic offers a full range of debt solutions, including Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs) and Bankruptcy Assistance. For those clients that elect a DMP as the most appropriate debt solution there is a fast-track service which will help an individual start to tackle their debts within a matter of days. For just £69.50, the expert Atlantic team will review an individual’s current financial commitments and income and make recommendations of the best debt solution for their circumstances. This includes dealing immediately with any court actions on the individual’s behalf as well as starting negotiations with creditors to freeze interest and charges.

“Our approach is to conduct a thorough review of a client’s income and expenditure to ensure that all debts are taken into account and a fair assessment of their living expenses is determined so that they can continue to maintain a reasonable quality of living. Income optimisation to determine a client is claiming all their entitlements is also crucial, as is looking at reducing expenditure, like energy bills and bank charges.” concluded Kevin Still.

“As a result, we are able to get creditors to freeze interest and charges on the large majority of our clients’ credit agreements. And that is vital to stem the debt problems they are facing.”

*Source: Findaproperty

To find out more about Atlantic Financial Management contact us or call 0845 0 30 30 30