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Rent arrears top cause of repossessions
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Recent research from the National Landlords Association shows that almost half of repossessions from private landlords are due to rent arrears.
47% landlords questioned indicated that late or non-payments caused them to take action. The same figures show that around 20% of tenants were in rent arrears to their landlord during the second quarter of 2010.[1]
Over one-third of landlords said that they had not had to seek a premature end to a tenancy agreement. Of those that had, only 23% said that the reason was because of anti-social behaviour.[1]
Rent arrears top cause of repossessions
Where landlords had taken action to remove tenants, 57% left within three months, with 81% of cases settled within five months.
Costly
The chairman of the National Landlords Association, David Salisbury, said that the findings highlighted the potential costly process for landlords. Salisbury said, ‘Gaining possession can be very costly for landlords, especially when it is related to rental arrears. Many landlords have mortgages to pay on top of the expense of gaining possession. One-third of landlords have reported paying between £250 and £1,000 to have tenants removed. This amount is often compounded by late rent payments.’[1]
[1] http://www.landlords.org.uk/news-campaigns/news/rent-arrears-are-main-cause-possessions
