More than 67,000 rental households across the UK now owe more than two months’ rent according to LSL Property Services.
The firm’s quarterly rental market analysis, looking at October to December inclusive, shows that those in severe arrears rose 2,000 since the third quarter of 2013. Even so, the number of households in severe arrears is still 26 per cent below the rate a year ago.
Although evictions have generally been fewer than were anticipated at the start of the downturn back in 2007, there has been an increase recently. The latest data, covering the third quarter of 2013, shows 30,807 tenants facing eviction, representing a quarterly rise of 11 per cent.
Meanwhile, landlords’ own mortgage arrears have fallen for the fourth quarter in a row. By the end of Q3 2013 the number of Buy To Let mortgages over three months in arrears stood at 17,500, down 1.1 per cent since early 2013.
David Brown, commercial director of LSL, says those tenants struggling with late rent payments represent “the biggest risk for the private rented sector” in 2014.
“For these households, signs of economic growth have been confined to the newspaper and are yet to make wallets any fatter. This small proportion of private tenants is shrinking, but remains a serious concern for some landlords” he says.
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Comments
These articles always leave me asking questions.
Can any body list the main points left out of these half informed articles?
For the UK:-
How may rentals are there?
How many mortgages are there?
What is the churn rate for lettings?
With these figure readers will have some chance of knowing what is really happening expressed as percentages. With all these situations there is bound to be a normal value. Problems can only be said to exist when values move away from the normal.
This is just basic school level science.
It won't be long beforethe advertiser notuice the drop in viewing figures, story views etc.
This question journalism to hide a lack of knowledge isn'y very good and certainly has no entertainmant value. perhaps everyone else is on the new forum thing
4 articles on LAT today - just 3 comments including this one.
Biggest risk.
Has this not always been the case?
After the rather depressing headline, there is a nugget of sunshine rarely mentioned
"Even so, the number of households in severe arrears is still 26 per cent below the rate a year ago."
STILL 26%? Sound rather like someone is disappointed!