As rents continue to rise and wages fall Tenant Arrears Tracker by Templeton LPA have revealed that in the second quarter of 2012 the number of tenants in severe arrears has risen to a worrying 100,400 – an increase of 24% compared to a year ago.
The specialist practice of LPA Receivers (part of the LSL Property Services plc Group) claim that the number of tenants in severe financial difficulty climbed by 8% in the second quarter of 2012, with over 7,000 more tenants over two months in arrears than in the first quarter of 2012.
The second quarter of 2012 reveals the highest number of tenants ever recorded on Templeton LPA’s records, which date back to 2008, with an average of 100,400 tenants in severe arrears across England and Wales.
The increase also represented a proportional rise in the second quarter of 2012, where tenancies in severe arrears represented 2.6% of all tenancies in the private rented sector – an increase from 2.4% in the previous quarter.
Furthermore, the increase of tenants in severe arrears has also driven up the number of tenants being evicted through court orders. The Tenant Arrears Tracker reveals that in the last quarter of 2012 26,060 tenants faced eviction notices – 6% more than in the previous quarter, and 5% more than in the same period of 2011.
Templeton LPA is a specialist practice of chartered surveyors, which offers Law of Property Act (LPA) receivership services to lenders.
And in 2011 we recorded a massive £2, 404, 234.42 worth of accumulated Rent Defaults and Property Damages; collected from data received from our vigilant community of landlords and letting agents, covering the entirety of the UK.
We can only predict that the situation of rising arrears and evictions will only be further worsened once the Universal Credit system goes live, in October 2013; whereby the landlord’s right to insist on direct rent payments if a tenant is in arrears will be abolished.
We believe that the solution to this impending mess is to:
1. Join the largest, busiest & safest community of landlords in the UK – networking together in order to stop habitually bad tenants defaulting on rent, trashing property and providing our existing tenants with the good neighbours that they deserve, as well as pay for.
2. Find out how Credit Unions can help you and your tenants avoid the pitfalls of the welfare reform.
3. Give your good tenants the credibility they deserve, here.