Rental Arrears Are Down But Probably Not For Long, say Experts

22 November 2012 Categories: News

Rental Arrears Are Down But Probably Not For Long, say Experts

According to new research carried out by LSL Property Services, rental arrears are at their lowest level since January 2011, even though rents have been rising steadily for the last 2 years. It seems that tenants are now coping better with higher rent demands, and are learning to spend less in other areas of life. At the same times though, landlords are also influencing rent arrears by hand-picking only financially secure tenants for their properties.

The total amount of late or unpaid rent stood at £297million at the end of September, but fell to £265million by the end of October. Director of LSL Property Services, David Newnes, commented, “An improving economy and a resilient jobs market have helped tenants get on top of their rent”.

Whether this trend will last over the festive season remains to be seen though, as tenants splash out on luxuries they wouldn’t normally consider. “2013 will bring more austerity, and if rents rise further, arrears are unlikely to continue to fall,” added Mr Newnes.

The fall in rent arrears is adding to the prosperity of landlords at the current time though, and when combined with the slowly increasing rental yields, it spells good times for landlords and investors alike.