Debt problems and the threat of going bankrupt continue to have an effect on the wider UK economy, as new figures show that rent arrears due to bad debts are the main cause for buy-to-let landlords having to regain their properties.
Research conducted by the National Landlords Association (NLA) has revealed that tenant rent arrears is the main reason why landlords are having to regain their properties from tenants, often placing themselves at risk of falling into debt and requiring debt help themselves.
Tenant arrears accounted for a massive 47% of landlord property possessions and it emphasises the snowball effect of debt in the recession on the wider economy.
"Gaining possession can be very costly for landlords, especially when it is related to rental arrears," said NLA Chairman David Salusbury.
"Many landlords have mortgage payments to pay on top of the expense of gaining possession. One-third of landlords have reported paying between £250 and £1,000 to have tenants removed. This amount is often compounded by late rent payments."
A more positive 81% of cases were reported to be resolved within five months although where a possession was concerned, 57% of landlords reported the tenants took up to three months to move out.
This is further proof that as a nation financial burdens are becoming more and more unmanageable for many cash-strapped Brits. Increasing numbers of people are experiencing anxiety over money problems, issues which are affecting their psychological and physical health. AXA reported that a massive 42 million adults are suffering from Money Sickness Syndrome, double what it was four years ago.
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