Rental arrears promise a tricky 2010 for landlords

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by Gill Montia

Landlord Assist is warning that buy-to-let conditions will remain difficult for landlords in 2010.

According to the rental arrears and eviction specialist, around 150,000 tenant evictions will have gone before the courts by the close of the year.

The firm points out that with no signs of the economic downturn lifting, arrears will be a main concern next year, with uncertainty over interest rates adding to anxieties.

Landlord Assist managing director, Graham Kinnear, says: “Landlords are less equipped to sustain non-paying tenants than they were a year ago and need to take precautionary measures to minimise the risk of being exposed to rent arrears.”

However, oversupply caused by home movers opting to rent, rather than sell, is tailing off and upwards pressure on rents is possible in popular areas.

According to property portal, FindaProperty.com, rents rose by 0.1% in October to an average of £830 a month, the sixth month of stable or rising prices.

In other related news, the NLA has recently launched rent guarantee insurance with a policy that includes legal expenses cover and a dedicated 24-hour advisory service.

The new offering is available to all UK residential property landlords.