Severe rental arrears 20% above the long term average
The number of private sector tenants in England and Wales with severe rental arrears has increased by 3.3% on a quarterly basis despite wider improvements in tenant finance, according to the latest research.
The Tenant Arrears Tracker by LSL Property Services also shows that those more than two months behind on rent has reached 98,000, the third highest level on record, with only the second and third quarters of 2012 seeing any worse.
Strained tenant finances are also reflected in evictions as court orders have risen by 5% in the first three months of 2013 and those in serious arrears now represent 2.4% of all tenancies in England and Wales, up from 2.3% in the previous quarter.
On an annual basis, the number of tenants in severe arrears has shown a slight improvement, falling in absolute terms by 2.9%. However this leaves severe arrears over the last 12 months 20% above the long term average.
Tenant Alerts at LandlordReferencing.co.uk have nearly doubled in the last month compared to our exclusive statistics recorded in May 2013; £81,000+ worth of accumulated arrears & damages last month, compared to £43,000+ the month before.
Coupled with the news that LRS reported on in the middle of this week;
Bailiff & female colleague shot & wounded trying to evict tenant
it raises the question; will we start to see more of these kind of problems arise as repossession rates go up ?
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