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News: Fall in BTL rent arrears

Tue, 08 Apr 14

The number of tenants who are severely behind on their rent has plunged by 35% in the past 12 months.

Some 68,000 households remain seriously behind with rent payments, down from 105,000 in the same period last year.

That figure is down sharply from a peak over 116,000 in the middle of 2012, according to the latest Tenant Arrears Tracker by LSL Property Services.

Evictions have also fallen as a result, with court orders down 3% in the final months of 2013.

The number in serious arrears of more than two months has also improved. Those owing more than two months’ rent now represent 1.4% of all tenancies in the UK, down from 2.3% of all tenancies one year ago.

The number of landlords in mortgage arrears has also fallen, hitting the lowest level since mid-2008.

Paul Jardine, director and receiver at Templeton LPA, owned by LSL, said: “Personal finances are finally defrosting across the UK, with many people experiencing the first real financial spring for half a decade.

"Tens of thousands of households are looking forward to a slightly more comfortable year in 2014, without the lurking anticipation of serious rental arrears.

“It’s true there remains a long way to go. Certainly, for any particular tenant still facing serious hardship, this won’t yet feel like an improvement."

The positive figures come despite an 11.1% seasonal increase in cases of severe arrears between over Christmas and the New Year period, Jardine said.

"The seasonal difficulties of the festive period and New Year have taken their usual toll. But a clear positive trend is emerging. Slowly but surely a brighter economic picture is breaking through the gloom."

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