This is according to Landlord Assist, who says that whilst there are signs of optimism in the market, private landlords still face growing rent arrears caused by continued unemployment rates and the ongoing failure of the Local Housing Allowance system – whereby rent paid to cover housing costs is paid to the tenant, in the hope that they pass it on, instead of directly to the landlord.
In addition to facing rent arrears, landlords also continue to operate against a raft of administration and legislation in order to keep their properties let and the rents coming in.
Commenting, Graham Kinnear, MD of Landlord Assist, said: “Whilst the future looks much brighter for landlords in terms of demand for rented accommodation and marginal increases in rent, landlords continue to battle against rent arrears and increasing red tape. As a result, the following few months will remain tricky for landlords even though there finally appears to be grounds for optimism.
“Landlords are unable to sustain non paying tenants and must take precautionary measures at the start the of tenancy agreement, such as reference checks, to minimise the risk of being exposed to rent arrears.”