More British tenants in 'severe arrears'
Published by Sarah Ashcroft
More and more Britons are finding themselves having trouble when it comes to paying their rent each month, according to new figures.
A study by LSL Property Services showed the number of tenants who are now classed as being in 'severe rent arrears
' jumped by 4,000 to reach 94,000 in the first quarter of the year. This is the fourth highest figure on record, indicating a huge number simply cannot afford their rent.
It meant there was a five per cent jump in the amount of renters struggling between the end of 2012 and the first three months of 2013. The final figures of last year showed a decrease, but that came on the back of five consecutive quarters of growth, emphasising rent is a serious problem for many.
Paul Jardine, director and receiver at Templeton LPA, said: "Many tenants have finally pulled their finances back together after the strain of the festive period, but for a significant minority the situation is actually much worse than three months ago, and this is reflected in the most severe tenant arrears.
"As 2013 progresses, the ability of tenants to pay their rent will depend on improvements in the labour market and wages in particular."
This could be bad news for landlords and some may wish to rethink their strategy when it comes to investing in further properties in the near future. Owners must be sure they will be able to rent out their homes and receive payment for them, or it is the landlords who find themselves in financial trouble.
As things stand, more than 25,000 tenants currently face eviction from their rented property, a figure that is up by 5.7 per cent and indicates just how significant the problem is.
In the long run, it could have a different effect on landlords in the shape of forcing them to freeze or even reduce their rental charges. Such a policy may be the only option if too many people are unable to pay each month.
Published on: April 5, 2013
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