Rent issues could have knock-on effect for credit scores

Increasing numbers of people may be putting their credit score at risk by getting into rent-related financial difficulties.

Research from the Association of Residential Letting Agents (Arla) has revealed a sharp rise in the number of agents reporting problems with tenants unable to afford their rent.

Over half (55 per cent) of those questioned said they had experienced a rise in rent issues because tenants cannot afford what they were previously able to.

Arla operations manager Ian Potter said that the main reason for the increase is higher levels of unemployment.

"If the jobless total rises in 2010 it is inevitable that the number of tenants forced to default on their rent will also increase," he commented.

A number of people could be at risk of a bad credit rating because they have lost their job, with the recession having taken its toll on a number of individuals' career plans.

Responding to a recent Arla survey, the National Landlords Association said that renting is no longer the "ugly sister" of the property market.

Posted by Gemma Walker