Portfolio Landlords feel the Pressure with Tenant Arrears on the rise

21 February 2012 Categories: News

Portfolio Landlords feel the Pressure with Tenant Arrears on the rise

The latest results are in from the quarterly-run Landlord Panel (conducted by BDRC Continental) and it seems that a record high number of portfolio landlords are feeling financial pressure because of the recent rise in tenant rent arrears.

Nearly half of the Panel, which consisted of 550 landlords owning at least 20 properties each, reported that they had experienced tenant arrears during the last 12 months, and a worrying 8% admitted making a loss in the 4th quarter of 2011. This may not seem like a significant figure but when 8% is compared to the 1% of the 3rd quarter you see the highest jump since the Landlord Panel began in 2006. Director of BDRC Continental, Mark Long, said about the results “This is the highest level we have seen of landlords with 20-plus properties making a loss, and the biggest increase between one quarter and another”.

It was also revealed that 46% of the landlords interviewed had increased their rents during 2011, and that an additional 34% were planning an increase for the first half of 2012.

Even with the rental arrears being experienced by a growing number of portfolio landlords the buy to let industry remains healthy, with an encouraging 80% saying they were still feeling happy and positive about being a landlord.