Smashed piggy bankHigh rents and squeezed household budgets are causing increasing numbers of people to sink into arrears, a debt charity has warned.

More than 10,000 people contacted charity the Consumer Credit Counselling Service (CCCS) for help with rent arrears in 2011, a 27% rise on the previous year.

Property

They were £760 behind with their rent and £82 short of the amount they needed to cover living expenses each month on average, the charity said.

Those in arrears with private landlords were in the worst debt, typically owing £924 and falling £145 short on their monthly budgets.

Housing association tenants who called the charity about their debts were £705 behind on average, while local authority tenants were around £622 in arrears.

Private sector rents soared last year as would-be buyers struggled to raise a deposit for a mortgage and they are likely to face an even tougher time getting a mortgage this year as lenders are tightening their borrowing criteria and raising their rates.

Meanwhile, high inflation has pushed up living costs despite showing recent signs of easing, at a time of high unemployment and low wage increases.

The CCCS said the average rent paid by people contacting the charity for help rose by 2.4% to £408 per month last year, while the amount of money they had left over after meeting basic living expenses fell by 40%, from £58 to just £35.

Delroy Corinaldi, CCCS director of external affairs, said: "Household finances are being squeezed as it is and for many people another rent hike will be the straw that breaks the camel's back."

Kay Boycott, director of communications, policy and campaigns at Shelter, added that anyone worried about debt or housing costs should seek independent advice.

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