Some 3.8M households on low incomes are estimated to be in arrears with household bills, whilst over 950,000 are said to be in rent arrears. Indeed, a lot of these households are at serious risk of homelessness or amassing serious debt.
As the number of households in arrears has tripled since covid, we thought it best to go into a bit more details about the impending crisis and what this means for those in debt.
1M Households in Rent Arrears
‘The anti-poverty charity now estimates 950,000 of the 11.6m households with an income below £24,752 are in rent arrears, while 3.8m are behind on their household bills.’
Heightened by the rising cost of living, more and more people are slipping into dangerous levels of debt when it comes to simply paying their rent. Essentially, the pandemic has pushed people who were just about breaking even to the point of destruction.
These findings are a weather warning for the oncoming storm, whilst some families are now tragically having to choose between paying rent or completing a weekly food shop. It’s a frightful choice.
However, those who are using this awful situation as an excuse to not pay their rent are both morally wrong, but they can also expect a visit from our expert team of recovery agents. If your rent is more than £1,000 per month and you have stopped paying it, then we can be instructed to come and recover it; so, bear that in mind.
£65M Help Fund Doesn’t Match Scale of Debt
The government has announced a £65m support package for renters who have fallen into arrears, however, many people including organisations representing landlords and people at risk of homelessness and poverty argue that the money won’t go far enough.
Indeed, with almost 33% of low-income households now in some type of arrears – triple the 11% estimated before the pandemic – the £65m rescue fund is seen as being not enough to meet the demands of the country.
Furthermore, Chris Norris, policy director for the National Residential Landlords Association, said recently: “With warnings the rent debts could pose a risk to the economic recovery, the government are admitting that many landlords are highly vulnerable to arrears.”
So, because of this, be you a landlord or a renter, you can expect a visit from a debt recovery team should the help fund not go far enough.
How Can Cobra Help?
Here at Cobra, we act for both landlords and banks across the UK providing solutions for those seeking their money back. We can also work closely with other professionals to ensure we get positive results.
Working within both the UK and foreign rental market, we locate debtors to ensure all outstanding debts and arrears are paid up in full.
With over 75 years’ worth of combined experience, we know that none of the usual excuses hold up to scrutiny. We also know how to best recover unpaid rent.
So, if you’re owed rent on a property or are owed money from a landlord, take decisive action, and instruct Cobra today at email@example.com