A report issued in May of 2017 suggests that a significant number of people in the United Kingdom are struggling with rent fees. This information comes from a survey undertaken by Shelter and YouGov which states that over half a million people in the United Kingdom are turning to credit cards, loans, overdrafts and a range of other sources in order to pay their rent. These people are all classed as low earners but the fact that people who are in employment are struggling with rent fees suggests that this is a problem that needs to be recognised in the United Kingdom.

Shelter have raised concerns about the fact that so many private rent tenants in the United Kingdom are taking on what has been classed as “desperate or dangerous debts” in order to retain their rental home. There is no denying that rent fees have increased in the UK of late and many people have found that they are struggling to keep up with the ever increasing demands associated with keeping a roof over their heads.

Shelter has called on the party that forms the next Government after the June General Election to make a firm commitment to creating 500,000 new homes that can be classed as “living rent”. This would see the amount that is paid by the tenant on a monthly basis limited at a level of one third of the lower-earning household’s income.

Rent fees causing problems

The survey was undertaken in April and it found that of the 1.6 million tenants who can be classed in the “low-earner” category, a total of 511,000 people were struggling with their rent fees, having to borrow money in order to make payments. The survey found that just short of 300,000 people utilised an overdraft and of course, this includes fees and/or interest; which means that people are paying more money on top of their rent. The survey also found that 249,000 were making rent payments via their credit card.

Close to 100,000 tenants were only able to pay rent fee after borrowing money from their parents while 91,000 people borrowed money from friends or family members. All of which means that people are finding themselves getting into financial difficulty on a regular basis, and it may be that turning to friends to act as a guarantor may be a solution that is worth considering.

There is a need for people to acknowledge that rent fees are crucial, a cost that has to be paid each month; and it is vital that tenants take steps to ensure they pay their rent fees in full and on time but without making their financial problems worse. Of course, this is much easier said than done.