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Thursday, January 08, 2015

Tenant arrears up from a downward trend

Serious rent arrears rose on an annual basis for the first time since 2012, according to the latest tenant arrears tracker report.

The LSL Property Services data for Q4, 2014 showed a rise in tenant rental arrears.

They reported that now 68,100 tenants were in severe rent arrears ( arrears of more than two months). This is an annual rise of 7.2%.

Despite the rise, figures are still far off the Q3, 2012 peak, when LSL reported 116,600 tenancies in severe arrears.

Adrian Gill, director of estate agents Your Move and Reeds Rains, remained positive that the downward trend on arrears would return, saying

‘The long term trend is increasingly clear. Since the sharpest pinnacle of tenant difficulties in 2010 the number in serious rent arrears has practically halved,’ 

‘As rising wages start to combine with much lower levels of unemployment, the fundamentals of the economy have started to turn in favour of tenants. If that can continue, then so can the trend away from arrears, as renting becomes more affordable,’ 

The LSL data also reported a 4.4% drop in eviction rates, with an annual tenant eviction rate down by 6.0%.

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