Credit crunch 'hits renters'

By Sarah Engle, Mon 11 Aug 2008 - Published in Banking

It has been well-documented in the media that some people are struggling to get loans to buy houses at the moment.

However, new research by AXA has revealed renters are also finding the current economic climate tough.

A report by the group has found 13 per cent of people in rented accommodation have fallen into arrears during the past 12 months, with 50 per cent expressing concern about being able to meet their rental payments in the future.

The study also revealed 95 per cent of those in privately rented accommodation do not have income protection to cover them if they unexpectedly lost their job.

Managing director of personal lines intermediary at AXA Mike Keating said: "While rental rates appear to have dropped marginally in the last few months, it's going to continue to be tough for many tenants."

Elsewhere, Prudential claims the credit crunch is forcing people to reduce the amount they are setting aside for old age.

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