Average rent arrears claims reached £2,092 in the second quarter of this year - a rise of 15% from £1,816 in the first three months of 2024.
It’s also an increase of 31% from £1,594 compared with the second quarter of 2023.
Deposit alternative supplier Reposit, which produced the figures, says they are a reflection of the financial difficulties both tenants and landlords continue to face such as high interest rates and increasing rents. Throughout Q2 this year, the interest rate remained high at 5.25%, while rents continued to rise by 2% throughout the period to an average of £1,133.
The effect of substantial market pressures on landlords was apparent in a report by the lenders’ trade body UK Finance which showed that at the end of Q2 24 there were 13,570 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance - 1% greater than in the previous quarter.
However, 710 buy-to-let mortgaged properties were taken into possession in the second quarter of 2024, 13% higher than in Q1.
Reposit says that while the average amount claimed for tenant arrears had increased, the overall percentage of tenancies ending with outstanding rent dropped by around 3% compared to Q1.
The supplier claims that cash deposits are not enough in 17% of tenancies to cover costs such as rent arrears or damage.
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