Networking Landlords slash rent arrears in May 2013
According to the latest Buy-to-let Index from LSL Property Services PLC rent arrears fell 2.1% during May 2013.
LSL’s buy-to-let index out today shows that the total amount of late or unpaid rent decreased to £276 million last month, compared to £282 million in April.
Rent rises in May were also slower than recent months, where the average rent in England & Wales rose by 0.1% since April, to £737 per month.; which is slower than the average monthly increase of 0.3% over the previous twelve months.
6 out of 10 regions saw rents rise in May. The fastest increases were in the East Midlands, where rents are up 0.4%, followed by the North West with a 0.3% monthly rise. London, the South East and the East of England all saw rents 0.2% higher than the month before. However, rents in Wales fell by 0.7%, followed by a 0.4% drop in the West Midlands, while rents in Yorkshire and the Humber are down by 0.3% compared to April.
On an annual basis, there remains significant variation in the rate of rent rises. Once again, London dominated, with rents 7.2% higher than a year ago. Next fastest was Wales, where rents are up 5.2% since May last year, followed by the North East with annual rent rises of 4.0%.
In 9 out of 10 regions rents are higher than a year ago, with only the South West seeing no change since May 2012.
Landlord Referencing Services exclusive Tenant Alert data from May 2013 also reveals a slight decrease in rent arrears uploaded by our vigilant community of landlords – £31,000 worth of arrears compared to the amount recorded at LRS in April 2013, which was £90,000.
Which begs the question: what with more and more landlords and letting agents networking together to reduce the risk of taking bad tenants on – is this why rent arrears are gradually dropping?
The combination of landlords & agents networking together, tenants realising that they must toe the line and pay their rent (otherwise they will have no where else to go), private rented properties becoming harder to come by and the launch of the UK’s 1st “Pay-As-You-Go” Lifestyle, Financial and Identity Tenant Reference – LRS truly believe that these reasons are the driving force behind this drop in arrears.
Landlords & Letting Agents truly are sending a clear message to tenants that there are just not enough properties and if they refuse to pay then their next landlord/agent will simply refuse to house them.
Would you like to reduce your rent arrears? Then simply CLICK HERE.