Number of tenants in arrears goes up, says research
The number of tenants falling into rental arrears has risen, according to new research.
National Landlords Association research found that a typical member, with an average portfolio of 12 lettings, has four tenants in arrears with an average of £2,363 owed.
The NLA found that just under half (49 per cent) of 546 landlords surveyed online last month experienced rental arrears over the past 12 months,while 37 per cent are worried about arrears over the coming months.
The research also revealed the impact on smaller landlords. Of those with only one letting, 16 per cent are making a loss on their investment.
‘It is a sign of the difficult economic conditions that so many landlords are experiencing rental arrears,’ said David Salusbury, chairman of the NLA. ‘Short term instances of arrears can often be resolved with a sensible repayment plan or a temporary reduced rent arrangement.
‘It is in landlords’ best interests to help tenants through tough financial times where possible.’
The NLA has recommended a range of measures to help landlords who are experiencing arrears. These include carrying out background checks, taking deposits and building better relationships with their tenants.
A survey by estate agency network LSL Property Services earlier this month showed that the average rent in England and Wales went up by 0.9 per cent to £718 per month from May to June this year.