Increasing reliance on credit
A recent survey carried out by YouGov for Shelter last month has revealed that somewhere in the region of seven million mortgagees and tenants are relaying on credit to pay their monthly housing costs, with many resorting to taking payday loans from lenders demanding an extortionate 4000% APR.
The trend is worrying as clearly this level of reliance on credit for basic housing costs is not sustainable. It’s of particular concern to landlords with buy-to-let mortgages with arrears set to rise as tenants are unable to pay their rent. More than ever, landlords should choose their agent wisely: thorough credit checks on potential tenants are set to take on even more importance in the coming months.