Renters aged under 45 or under make up nearly three quarters (73 per cent) of all those seeking help for unmanageable levels of debt from Creditfix – a rise from 67 per cent in 2021.
The average level of debt for renters rose from £14,549 in 2021 to £17,347 this year for people who hold an insolvency voluntary agreement (IVA) with the debt relief company.
Creditfix put this down to the huge price hike from landlords which is highlighted in September’s figures from HomeLet. The estate agent found the average rent price in the UK stands at £1,061. This jumps up to £1,276 when London properties are included.
The current trend doesn’t paint a promising picture either. From July to September, there was a 10 per cent hike in private rental prices compared to the same period in 2022 and those living in London saw this rise by a further 12.1 per cent, according to data from Rightmove.
Struggling renters need guidance
Stephanie Chapman, chief operating officer at Creditfix, said: “The rental market, especially in larger towns and cities, is driving up prices and pushing younger people into debt. The demand for rental properties is high, leading to increased competition and rising rental prices.
“Many people are struggling to afford rent or find appropriate housing in today’s market which can quickly put strain on budgets. In such cases, seeking debt help becomes essential for overcoming financial burdens.
“There are formal and informal solutions available to renters to help them manage what they owe. Debt advisors will be able to offer guidance on the best solution for your circumstances, helping you set up a repayment plan that takes your living situation into consideration.”
