So much for Covid Debt - rent arrears are lowest for ...

Research carried out on behalf of Paragon Bank has highlighted each landlord has an average of 1.3 tenants with rent arrears - actually the lowest since the start of 2011.

The latest figure comes following a decline from 1.6 tenants per landlord in the early part of this year, with the numbers of tenants in arrears falling consistently after climbing to 2.1 in Q2 2020, as the pandemic impacted incomes.

In addition, the average amount of outstanding rent has reached a four-year low.

After falling from £2,376 in Q1 2021 to £1,781 Q2 - a reduction of £595 - the average amount of rental payments owed to agents and landlords is the lowest since the end of 2017 when it sat at £1,584.

The survey of over 750 landlords found that just over a third have had a tenant request a change to their rent, most commonly rental holidays or a reduction in rent of up to 20 per cent.

However, agreements were reached in almost all cases as 36 per cent of landlords also said they had granted requests to some form of change to rent.

Moray Hulme, Paragon Bank director of mortgage sales, says: “It is really encouraging to see the average number of tenants in rent arrears at the lowest point for ten years and the amount of outstanding rent at the lowest since 2017.

“Our latest survey has also showed us how landlords have been supporting tenants throughout the pandemic, granting requests to changes to rent in the vast majority of cases.

“These requests have been falling alongside the incidences and volume of rent arrears and considering that the fewest number of people are now on furlough since the scheme launched in March 2020, it is a good indicator that the economy is bouncing back well.”