Tenant arrears at 2-year high in Q2
In the second quarter 74,000 private tenants owed more than two months’ rent, while the numbers facing serious arrears rose by 4.4% from Q1 2015 and 7.2% on Q2 2014.
In comparison just 5,700 landlords meanwhile reported being seriously behind on mortgage payments.
Adrian Gill, director of estate agents Your Move and Reeds Rains, said: “Across the UK most households are beginning to earn more, and it is this majority of tenants who are able to bid up the price of rented homes in the face of constricted supply.
“Rents are accelerating in response – rising by more than 5% over the last year according to our separate research.
“But behind this headline buoyancy, there is a less positive story. For a small minority there has been no transformational boost to household earnings, and it is this more marginal population of tenants who are feeling the squeeze of rising rents most sharply.
“Severe arrears are still much lower than their previous peaks – but a lack of further progress highlights the underlying and fundamental supply shortage. Tenants need more available properties on the market, and landlords should be encouraged to invest further in order to keep up with growing demand.”
The chance of a tenant falling seriously behind on rents is still low on a historical basis, as the number in serious arrears represented 1.4% of all tenants, down from 2.9% in Q1 2008.