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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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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