View more on these topics

Number of tenants in deep arrears grows by 24 per cent year-on-year

Some 100,400 tenants in England and Wales were in severe arrears in Q2 2012, a year-on-year rise of 24 per cent, according to Templeton LPA’s latest Tenant Arrears Tracker.

The figures are the highest since the company, which is part of the LSL Property Services group, began tracking the market in 2008.

The number of tenants in severe financial difficulty climbed by 8 per cent in Q2 2012, with more than 7,000 more tenants over two months in arrears than in Q1 2012

The increased number of tenants in severe arrears has also driven a rise in the number of tenants being evicted through court orders.
In Q1 of this year, 26,060 tenants faced eviction notices – 6 per cent more than in the previous quarter, and 5 per cent more than in the same period of 2011.

Templeton LPA director and receiver Paul Jardine says that as the private rented sector grows, the number of tenants in dire financial straits is steadily climbing, with falling wages in real terms compounded by rising rents.

Jardine says: “The wider rental market currently includes a much higher proportion of financially comfortable tenants who would have been buyers before the initial credit crunch, reining in general arrears across the market as a whole.

“However, this will be no comfort to the growing minority of tenants several months behind with their monthly rent cheques.”

Recommended

Proportion of homeowners paying off arrears rises to 60%

The proportion of homeowners who are paying off their mortgage arrears is improving compared with the last economic downturn, according to law firm Irwin Mitchell. The findings from the firm’s field agency business, Ascent, reveal that the number of those who paid off some of their arrears increased by 11.1% over the last three months […]

Complaints increase by 9 per cent over quarter

The number of mortgage complaints has risen by 9 per cent from 2,044 to 2,234, with 26 per cent upheld, according to the latest quarterly complaints data to be published by the Financial Ombudsman Service. But mortgage complaints made up 4 per cent of the total number of complaints referred to the FOS between April […]

1

John Eastgate joins Kent Reliance

John Eastgate, sales and marketing director at Saffron Building Society, has joined Kent Reliance as sales and marketing director in a bid to drive growth at the lender.

2

Newcastle eases lending into retirement criteria

Newcastle Building Society has relaxed its criteria around lending into retirement and will now allow borrowers’ mortgages to extend beyond age 75 if they can prove they can afford the repayments.

Newsletter

News and expert analysis straight to your inbox

Sign up