More tenants struggling to pay rent
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The Association of Residential Letting Agents has reported that over half of its members have seen a rise in tenants who are struggling to pay their rents.
The latest survey from ARLA, which collates data from 733 letting agents and information from lenders Mortgage Express and Paragon Mortgages, shows that 55% of members in Q4 reported that tenants are having trouble making rent.
Although this represents a drop compared to the previous three months, ARLA says this figure is still worryingly high.
Ian Potter, operations manager at ARLA, says that if unemployment rises this year it is inevitable that the number of tenants forced to default on their rent will also go up accordingly.
He says: “The housing market looks increasingly buoyant with demand for rental properties having risen strongly since October.
“The problem of rental arrears will therefore persist and potentially grow in seriousness as tenants get caught in a web of debt.”
Tenants missing their rent has the knock-on effect of a threat of eviction and landlords defaulting on their mortgage repayments.
ARLA wants the government to create uniform legislation to help cultivate the improving housing market and protect both consumers and landlords.
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Readers' comments (3)
Anonymous | 11 Feb 2010 5:28 pm
All the comments that BTL is a commercial loan and should be treated as any other business loan. If so, why should landlords be treated differently to any other business owner and be protected by the government?
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Anonymous | 12 Feb 2010 10:36 am
How about treating landlords fairly?
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Anonymous | 12 Feb 2010 3:15 pm
Some people need to remember that some tenants receive Housing Benefits which is paid direct to the tenant as the rules were changed by the current government (this will change!)and not being passed on to the landlord. Without this service by the landlords there would be a cronic shortgage of properties,these landlords do need protection,at the moment they have to wait 8 weeks before they can report arrears. They need to pull out of that particular market now and only return once the rent pay system is changed back to how it was pre 2007
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