Rent arrears still a problem for 1 in 5 Landlords

However, the average amount of outstanding rent arrears has dropped significantly from £978 in Q1 to £799 in Q2. This could indicate that financial pressures on tenants have started to ease as the fragile economic recovery continues.

Chairman David Salusbury said:

“Rent arrears are a serious problem for landlords all over the UK. It is good to see the latest data which represents a small improvement in that more tenants are keeping up with their rent payments and not putting pressure on their landlords who may well have mortgage repayments to consider. It is critical that tenants and landlords communicate and work together to tackle financial problems before they result in a loss of rent or even the tenancy".

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One thought on “Rent arrears still a problem for 1 in 5 Landlords

  1. Major Landlord

    I fail to understand why nobody wants to tackle the issue of rent arrears, which is the biggest single threat to private landlords, and the elephant in the room. Frankly, the NLA seems to be more interested in making pointless statements like this for publicity reasons, than in actually doing anything effective about the situation. Consider the facts:

    – it is almost impossible to obtain rent protection insurance for most of the “vulnerable” tenants who are the ones most likely to default on rents
    – thanks to Brown and co., LHA is now paid direct to tenants, and is all too often retained by them rather than being passed on to the landlord. You have to wait 8 weeks before you can get this changed. We have been told there will be a review of this ludicrous situation, but WHEN?
    – if ANY tenant falls behind with rent to the point where eviction becomes the only option, it can take SIX TO TWELVE MONTHS to gain possession, during which time the landlord may have to service his own loan without any income, or at least be faced with a severe drop in earnings. When the tenant finally leaves (usually after a court order has been obtained and flouted on advice from the CAB and local council, and after a bailiff has been appointed) the chance of the landlord recovering his debt is virtually zero, while his legal costs will often exceed £1000
    – if the landlord visits the tenant to discuss the matter as part of his rent recovery attempts, this is often regarded as harrassment and can land the owner in court

    In what other business can a defaulting customer continue to use the goods or services for which he has not paid, with the full backing of the legal system, and no eventual penalty or prospect of settlement?

    In the USA, it takes just 2 weeks to obtain possession from a renter who stops paying his rent. Why is our own system so slow, so ineffectual, and so slanted towards the rights of the tenant?

    Being a private landlord in the UK nowadays means you are on your own: you get all the bills, and none of the rights. Can you imagine what would happen if you stopped paying your tax? Would HMRC wait a year and then let you off the hook? I don’t think so!! The system for possession is a state-sponsored disgrace, which makes free use of the property of private landlords to house problem tenants. The NLA should get off their backsides and start lobbying to so something about it once and for all.

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