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 The number of private tenants falling into arrears because they can't afford the rent is rising: 13% of renters have gone into arrears in the past 12 months, 7% of them in the past three months.
In addition, half of those who can afford to keep on paying the rent are increasingly worried that will not be able to do so in future, according to research by AXA insurers.
All of this potentially adds further misery to the mortgage market, as buy-to-let owners suffer the consequences of tenants failing to pay the rent.
The research, conducted by YouGov for AXA, also reveals that 95% of people in privately-rented accommodation have no kind of income protection to help out if they were to lose their job.
"Our research shows that over a third of people privately renting are doing so because they can't get a mortgage at the moment. On the surface of it, this looks like the rental market should be buoyant. But if you consider that many of those renting may be struggling to make ends meet it's certainly not all good news for buy-to-let owners,” says Mike Keating, Managing Director of Personal Lines Intermediary at AXA.
"The cost of living is rising rapidly and average earnings are not keeping pace. And while rental rates appear to have dropped marginally in the last few months it's going to continue to be tough for many tenants."
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