ARLA reports rise in rental arrears

Permalink: ARLA reports rise in rental arrears
by Gill Montia

The Association of Residential Letting Agents (ARLA) has reported a rise in the number of tenants struggling to meet their rental payments.

In a survey of members, ARLA found that 65% of respondents had noticed an increase in payment difficulties in past past six months.

In addition 93% those questioned reported that since the beginning of 2009, more tenants were haggling with landlords over rent.

Agents noted that some prospective tenants appeared to be trying to take advantage of a downturn in the market, rather than negotiating out of necessity.

In Prime Central London, up to 98% of respondents noted the trend.

The area has formerly seen strong demand from the international and finance sectors, both of which are now under pressure to cut costs.

ARLA operations manager, Ian Potter, points out that tenants moving onto Local Housing Allowance because they have lost their jobs will automatically fall into the late payment category.

However he sees the rise in arrears as “very worrying”

Mr Potter also mentions that government initiatives to help tenants at risk of eviction because their landlord is being repossessed have not yet filtered through to the market.

On a positive note, ARLA figures shows that the number of new tenancies agreed has actually increased slightly over the last quarter.