Tue, 11 Nov 14
The number of tenants in the UK behind on their rent has fallen, according to the latest report by LSL Property Services.
LSLís latest Tenant Arrears Tracker shows that 65,200 UK households remain more than two months behind on rent, compared to 71,700 in Q3 2013, with the number of tenants facing serious rental arrears falling 9 per cent in the past 12 months,
The improvements mean an overwhelming 98.6 per cent of private sector tenants now avoid significant rent arrears and marks an annual improvement of 6,500 households who no longer face the potential threat of losing their home.
Indeed, according to LSLís latest Buy-to-Let Index, overall tenant arrears of any duration now stand at just 7.2 per cent as of September 2014, down from 8.5 per cent in September 2013.
David Newnes, director of estate agents Your Move and Reeds Rains, comments: "The private rented sector has mustered enough new capacity to meet, in part, the growing demand for affordable housing, through the greatest economic depression in modern times. This isnít just about those relatively prosperous households forced to put ownership plans temporarily on hold. For many thousands of others, with far tougher monthly budgets, private tenancies have also provided a lifeline. For many renting is now their chosen route as it provides flexibility and mobility."
In addition to gradual growth of rents, LSL attributes the improving conditions to the improving jobs market, as unemployment continues to fall.
"Wages would however need to rise faster for most households to feel the full effects of economic recovery," adds Newnes.
Improved tenant finances have now started to be reflected in eviction rates. In the latest data, 27,700 tenants faced a court order for eviction in the second quarter of 2014, down by 16 per cent compared to the previous quarter.
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