More than a million people borrow money to pay their mortgage or rent

Alex Johnson

Ashworth House exterior 300x212 More than a million people borrow money to pay their mortgage or rentA survey of more than 2,000 adults by the Debt Advisory Centre says that 3% of UK adults (which they equate to 1.5 million) used credit to pay their mortgage or rent in the last month. The 25-34 age group is more than twice as likely as other age groups to borrow money and Londoners are most likely to have borrowed to pay their mortgage or rent – 7% say they have done so.

Ian Williams of Debt Advisory Centre said: “This is a timely reminder that many people are still left struggling to get by from month to month. And the problem could get worse when interest rates begin to rise in the future. Most of us need to borrow a bit of money from time to time, but if you find yourself borrowing money to cover essential costs then that could be a sign of a serious problem.”

Live (kind of) next door to Prince Charles
Ashworth House – which shares a boundary fence with Prince Charles’s Highgrove home, a couple of fields away – is on the market with Chesterton Humberts. There are three reception rooms, six bedrooms and a two bedroom cottage. Price: £1,950,000

Prime central London house prices up 116% since 2005
New Savills research suggests Prime central London house prices have more than doubled in the past 8 years. Mayfair is the biggest riser (up 139%), followed by Knightsbridge, Belgravia and Chelsea with growth of over 128%. Arguing that supply has not kept up with demand, the report says ‘prime London’ has grown outwards from its 1950s Belgravia centre to a larger area from Richmond in the south west to Islington in the north, and from Chiswick in the west to Canary Wharf in the east.

Tenants’ energy rights explained
Ofgem has published guidance for tenants setting out their energy rights. It includes a survey showing that only 23% of consumers living in rented accommodation say they have ever switched their gas or electricity supplier but the report emphasises that the key energy right is that where a tenant is directly responsible for paying the energy bill they have the right to choose their own energy supplier. The landlord or letting agent should not prevent this.

In some circumstances, a landlord or letting agent may include a default supplier within their tenancy agreement. If this is the case, the landlord or letting agent should make tenants aware of any tie-ins with specific suppliers. The Ofgem guidance makes clear that as long as you are directly responsible for paying the energy bill then you have the right to switch supplier at any time without incurring an exit fee.

The research alsso shows that tenants that have not switched could save an average of around £190 on their annual energy bill.

Carolyn Uphill, Chairman of the National Landlords Association, said: “As energy prices rise, it’s essential that bill payers get the best value for money and when looking to rent a new property, tenants should consider the total cost of living in the property, including the bills, rather than the rent alone. We encourage tenants to shop around for the best deal and switch to a new, more competitively priced supplier. However, as a courtesy, we advise tenants to inform their landlord if they plan to change energy supplier and ask permission to add new wiring or equipment if this is required.”

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  • Newsbot9

    Landlords also generally have the right to toss out tenants – with 2 months or less – for doing so (technically without needing to give a reason), so…

  • FlashFellow

    But Ossie’s fixed everyfink, han’t ‘e ?

  • snozzle123

    Yeah and it’s not right especially for families. Tenency rights have been eroded in the name of free market dogma.

  • snozzle123

    If we do have a new housing bubble it must be very fragile. It seems to be completely untethered from real incomes.

  • Newsbot9

    Indeed. There are several continental systems of tenancy we should be considering.

  • Newsbot9

    Thinking about this, the figure is misleading. How many of those adults lead a household? The actual figure of affected adults could easily be 50% or more higher.

  • wakeuptheworld

    Prince Charles cares for people more than most of us give him a break, ask yourself if you do much for the common good.

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