According to the Office for National Statistics, the average cost of rent in the UK surged by 9 percent in the 12 months leading up to February this year, marking the highest annual increase since records began in 2015. As a result, nearly a third of renters have been compelled to seek government assistance due to the escalating rental costs in the UK.
Meanwhile. research from Reposit has found that there is an increased number of tenancies ending in arrears. In 2024 so far, at the end of 17% of tenancies, landlords said they needed to reclaim more than five weeks of rent to cover costs such as rent arrears or damage. This represents an increase from 13% in 2023.
Creditspring revealed that 3 in 10 renters have had to depend on benefits, while 40% describe their current financial situation as the most precarious they have ever experienced.
“Faced with ever-rising essential costs, many renters find themselves borrowing each month to keep up with rent increases—a vicious cycle where debt accumulates, savings disappear, and financial stability seems unattainable. This has driven many back to their family homes, unable to afford independent living.” says Neil Kadagathur, chief executive at Creditspring.
How the Elliot Leigh Guaranteed Rent Scheme Can Help
For landlords, the financial instability of tenants poses a significant risk. However, by joining the Elliot Leigh Guaranteed Rent Scheme, landlords can eliminate the worry of tenants falling into arrears. This scheme ensures that landlords receive a fixed rental income every month, regardless of whether the tenant pays or the property is occupied. This solution offers financial security and removes the burden of tenant arrears, making property investment more stable and stress-free.
In these challenging times, guaranteed rent schemes like Elliot Leigh's offer a vital safety net for landlords, ensuring a stable income and alleviating the worries associated with tenant payment issues.
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