Growth In Tenant Arrears Is Slowing
Wilmslow, Cheshire ( prfire ) October 31, 2012 – It has been reported that the growth in tenant arrears is slowing down, with the number of those in severe arrears now 99,000.
Severe arrears means those in arrears of more than two months, and in the last three months the number of those in this position has slowed down after they saw a rise of 1.6% in the three months previous to these statistics, according to figures released by Templeton LPA, the specialist receivers.
It is believed that this is due to the rise in rents following the inability for people to get on the housing ladder, fuelling rental demand. Those with low incomes are really feeling the pinch and although the rise in number of those in arrears has slowed down, it is still rising.
However, this news is encouraging for landlords especially following reports on October 25th 2012 that we are now out of the double dip recession. If things improve, then hopefully the number of those unable to make rental payments will fall.
For landlords, it’s a balance between getting a good rental income for their property, and making sure that payments are in line with the market and affordable to their tenants. It also reiterates the importance of credit checks, employer references and other checks to make sure that tenants are likely to continue to pay their rent.
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