This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Statistics released by leading residential service provider, LSL property services in late 2013 highlighted a rise in tenants in serious rent arrears. According to the figures, in excess of 67,000[1] privately rented homes in Britain were in debt of over two month’s rent.
Serious rent arrears in rental market
LSL’s final rental market quarterly review of 2013 indicated a rise of around 2,000 households in rent arrears from the previous report. Despite the rise, the figures were encouragingly 26% percent down in comparison to the same stage in 2012.[1]
Encouragement
Further encouragement was seen with the number of Buy To Let mortgages over three months in arrears down for the fourth successive quarter. The figures showed that this made the total the lowest since 2008, falling by an impressive 20% [1] over the course of 2013.
Risk factor
The commercial director of LSL, David Brown, suggested that the report findings could lead to a troubled 2014 in the letting industry. Brown proposed that the number of tenants in serious rent arrears represented, ‘the biggest risk for the private rented sector’[1]in 2014.
Mr Brown also suggested signs of an economic upturn were, ‘confined to the newspaper,’ going on to say that tenants in arrears were of, ‘serious concern’ to most landlords.[1]
However, Paul Jardine of Templeton LA suggested a brighter future could be on the horizon. Jardine commented that rental arrears were in, ‘a much better state than six months ago.’ This in turn, Jardine suggested, could lead to, ‘fewer people facing eviction in months to come.’[1]
[1] http://old.lettingagenttoday.co.uk/news_features/Serious-rent-arrears-biggest-risk-to-lettings-market
