Thirty-seven per cent of landlords waiting on rent

Permalink: Thirty-seven per cent of landlords waiting on rent
by Gill Montia

New research from the National Landlords’ Association (NLA) indicates that 37% of landlords currently have tenants in arrears with their rent.

A recent NLA survey also revealed that 44% of landlords have experienced rental arrears in the past six months and the body suggests the figures explain, in part, a significant rise in repossessions and mortgage arrears among buy-to-let borrowers.

According to the research, only 50% of landlords attempted to recover losses through the courts.

Despite the majority of landlords finding the court system straight forward, the time taken for a case to be heard (sometimes over three months) creates a problem.

NLA chairman, David Salusbury, comments: “Paying the rent has to be right at the top of tenants’ priorities as even one month’s arrears, in this climate, could be the straw which breaks the camel’s back. The mortgage has to be paid and the vast majority of landlords do everything in their power to make sure this happens.”

Mr Salusbury also points out that only around 35% of rental properties carry an existing buy-to-let mortgage, adding that “contrary to recent reports, most landlords are not expecting to be repossessed and lose their asset”.

He urges landlords and tenants to communicate and work together to tackle financial problems.

In related news, the Letting Protection Service, which provides insurance and referencing services for landlords, has recently reported a sharp rise in the number of tenants quitting their properties unannounced to avoid settling up the rent.