As the UK moves deeper into the recession, the number of people out of work has steadily increased to levels not seen in over 12 years. Today, the number of people unemployed stands at around the 2 million mark according to the latest report by the Office of National Statistics.

This will no doubt put a strain on those people who do not have the appropriate protection in place to cover themselves against the risks of redundancy. Recent reports by the Council of Mortgage Lenders enforce the deteriorating situation as they estimate the number of repossessions could reach over 75,000 by the end of the year.

The current situation has severe consequences for both homeowners and residential landlords who themselves are expecting an increase in rental arrears.

According to the National Landlords Association (NLA), 71% of landlords predict that there will be an increase in rental arrears during 2009. In addition, 67% of landlords who responded to the survey suggested that they had experienced problems with rental arrears in the past and finally a staggering 37% of respondents suggested they are currently having issues with rental arrears with their current tenants.