Serious rent arrears downturn

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Landlords will be relieved to hear the good news that serious rent arrears are at long last on a downturn, as being claimed by an estate agency chain.

Its report states that tenants in private rented accommodation are, over the next three months, less unlikely to accrue a significant amount of debt for late payments of rent.

The report says that over the last six months of 2015, 1,500 private renting households managed to get themselves out of large rent arrears, in direct contrast to the first six months of last year.

It is estimated that 82,900 households are behind by over two months’ worth of rent, this has fallen from 84,200 in the third quarter of 2015.

The figure is only 1.6% of the UK households who are privately renting, whereas in 2008 the proportion was 2.9%.

In 2012 there were 112,000 tenant households in serious rental arrears.

Adrian Gill, director of estate agents, said: “An individual tenant is still extremely unlikely to fall into serious rent arrears. In fact the proportion of renters getting seriously behind on payments has dropped considerably over the longer term. But absolute numbers are now going the right way too. With fewer people at risk from more serious consequences of struggling to pay the rent, this is great news.”

Source: www.pims.co.uk