Thursday, 24 July 2014 - 11:41
Rent default risk rising fast
Renters are increasingly unable to pay their rent or their mortgage and are more often in financial trouble due to the economic crisis, The Netherlands Environmental Assessment Agency (PBL) reports. Betwen 2002 and 2012, the number of households with these financial issues has doubled, with 510 households reporting a 'default risk' in 2012. These households' incomes is not enough to pay for household costs and even the basic living costs. Although these households are running the risk of not being able to pay off their mortgage or rent, it does not mean they are in overdraft with the bank. Scrimping on basic necessities or taking money out of their savings is covering them for the time being. According to the PBL, some are behind on rent or insurance, however. The number of renters who are in default risk almost tripled between 2002 and 2012, from five percent to 13 percent. Many of these renters live in Amsterdam, the southern end of the Randstad, North-Friesland, parts of Groningen and Flevoland and South-Limburg.