The latest industry Tenant Arrear tracker by LSL property services has revealed a promising decrease in the number of tenants that are severly behind on rental payments. When compared with 71,700 back in 2013, this year’s figure of 65,200 marks a 9%, which means that 98.6% of private sector tenants now avoid significant rent arrears.
LSL suggest that improved tenant finances fuelled by the improving jobs market are beginning to reflect in eviction rates, with 16% less facing a court order than just 3 months ago. Taking a look at the annual figure, this decrease means that the number of eviction orders has now fallen to their lowest since Q2 2010.
The tracker concludes with a look at Landlord’s finances, which are reported to have benefitted from healthier tenant finances. David Newnes, director of estate agents Your Move and Reeds Rains adds “Plenty of landlords have had their own financial problems, but after astonishingly steady progress these issues have almost entirely been consigned to the past.
This isn’t just good news for those with an investment property to support their pension plans. When landlords have a healthier cash flow tenants are less likely to see rapid rises in market rents. There are also more new homes coming onto the lettings market now, as the era of landlords struggling with their mortgages seems to be behind us, at least for the time being.”
Source: LSL Tenant Arrears tracker Q3 2014