Rental arrears on the rise

Rental arrears on the rise

Paying the rent on time became marginally more difficult for tenants in the private rented sector in February. On average late rent now stands at 8.8% of all rent due, compared to 8.2% in January 2016.

Tenant finances have also worsened compared to the same point a year ago. The latest arrears rate of 8.8% compares with 7.6% rent arrears previously in February 2015.

On a longer-term basis levels of late rent remain more encouraging. This February compares to the all-time high of 14.6% of all rent payable in arrears – seen in February 2010.

Adrian Gill, director of lettings agents Your Move and Reeds Rains, said: “For half a decade we have tracked a reliable long-term improvement in total levels of late rent. That is levelling off now.


It may be that we have reached a point where a residual possibility of communication, organisation and practical issues mean some late rent is inevitable. Despite this possibility, a real optimist would hope that late rent could continue to improve towards zero. In fact our latest figures on the most serious rental arrears are more encouraging, which would support the idea that we aren’t anywhere near more fundamental limits to the improvement. Better communication between landlords and tenants, and quality property management will be key in helping the market push this risk even lower.

The only cloud on that horizon is that more serious affordability issues are marginally more likely after the latest restrictions on buy-to-let investment. I am an optimist – but the entire buy-to-let industry is becoming more complicated, and will require more nuanced and bespoke answers for landlords in different situations.”

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Latest Comments

AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

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property guru
property guru 11 Jul 2016

Surprise suprise

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CommercialTrust
CommercialTrust 30 Jun 2016

This is great news for buyers and investors in a period of significant uncertainty. The 10-year buy-to-let fix at 3.99% in particular is excellent, a clear 100 bps ahead of the nearest competition. Though...

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Lee
Lee 30 Jun 2016

Let's see what happens to north-east property prices when Nissan announce they're leaving.

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DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

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DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

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DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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