Landlord Possessions increase as Tenants struggle with Arrears

21 October 2012 Categories: News

Landlord Possessions increase as Tenants struggle with Arrears

The latest quarterly Court Statistics released by the Government indicate a continued, steady rise in the number of landlord claims for possession that result in an order being made. Because of the rise in severe rental arrears, landlords made more than 25,000 successful claims for possession in the second quarter of 2012, and it is thought the next quarterly report will show similar results.

At present the number of tenants experiencing severe rental arrears – that is rent arrears of more than two months – is at its highest level since 2008, with more than 99,000 tenants behind with their rent payments. Unfortunately it is unlikely that the problem is going to improve in the near future, and as a result an increasing number of landlords are now opting for rent guarantee insurance products in addition to their normal forms of insurance.

Managing director of LetRisks, Michael Portman, commented “We have seen a sharp increase in demand for rent guarantee insurance as landlords and agents look to find ways to protect their rental income,”

“It is clear that this problem is not going to go away and we expect tenant arrears cases to continue climbing during the remainder of this year.”