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Rising rents and coming interest rate rise will put budgets under pressure

Money Advice Trust comments on ONS Index of Private Housing Rental Prices statistics

The Office for National Statistic (ONS) has today published new statistics on private housing rental prices for April to June 2015.

Private rental prices paid by tenants in Great Britain rose by 2.5 percent in the 12 months to June 2015 and rental prices increased in all English regions over the year to June 2015, with rental prices increasing the most in London (3.8%).

Jane Tully, Head of Insight and Engagement at the Money Advice Trust, the charity that runs National Debtline, said:

“Rising rents are a real concern – especially as we know that more people than ever before are renting their homes.

“While many households will be able to shoulder these increases in housing costs as the economic recovery continues, we fear that rent arrears will continue to increase.  At National Debtline we have seen the proportion of clients seek help with rent arrears double from six percent in 2007 to nearly 13 percent in 2014.

“With interest rate rises possibly only a few months away, we also expect to see additional pressure on private renters’ budgets as landlords pass on these extra costs to their tenants.

“This means there has never been a better time for people who are renting to review their household finances – and seek free advice from a charity-run service like National Debtline if they are worried about how they will cope with increased costs.”

 
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