Private sector rental arrears rising
Published by Max Salsbury for 24dash.com in Housing and also in Communities, Finance
Rental arrears rising
Rental arrears are on the rise, according to the latest research conducted by the National Landlords Association (NLA).
Just under half of landlords have suffered rental arrears in the last 12 months, while 37% are predicting arrears in the near future.
According to the research, a typical NLA member landlord with an average portfolio of 12 lettings has 4 tenants in arrears, with the average arrears owed by tenants £2,363.
Naturally, those landlords with larger portfolios have greater amounts owed to them.
Arrears problems are also affecting landlords with just one letting, including accidental landlords, with 16% reported to be making a loss on their investment.
David Salusbury, NLA Chairman, said: “It is a sign of the difficult economic conditions that so many landlords are experiencing rental arrears. In these circumstances, landlords should work with their tenants to minimise the impact of financial stress.
"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.
“Landlords who work collaboratively with their tenants towards sustaining the tenancy for the long term will encourage prosperous tenancies.
"It is professional and collaborative working that will help ensure the private-rental market remains a promising investment opportunity, in turn helping to bring the economy back to an upward trend.”