Rent arrears soar by 22%

Rent arrears soar by 22%

0:01 AM, 12th November 2024, About A week ago 2

Text Size

Landlords in the UK have seen rent arrears soar with the average claim reaching £2,064 in the third quarter – a 22% year-on-year increase.

According to data from deposit alternative provider Reposit, this figure significantly eclipses the traditional five-week cash deposit, which averages £1,347.

That leaves landlords vulnerable to a shortfall of around £700 in cases of arrears.

Despite the rising value of arrears claims, the overall percentage of tenancies ending with outstanding rent has fallen seasonally.

‘Each arrears case is now exceeding £2,000’

The firm’s chief executive, Ben Grech, said: “The amount claimed for each arrears case is now exceeding £2,000, substantially outstripping the value of a five-week cash deposit and leaving landlords at risk from an excess cost of around £700 per claim.

“With the incoming Renters’ Rights Bill, landlords are becoming increasingly conscious about protecting themselves in cases of rent arrears, driving more interest towards deposit alternatives.”

He added that the number of tenancies ending in arrears of more than five weeks rent is now 17%.

Landlords are struggling with high interest rates

However, both tenants and landlords are struggling with high interest rates and increasing rents.

Reposit says that the cost-of-living crisis has exacerbated the situation, with 52% of UK households reporting increased costs in August 2024.

Landlords are feeling the strain, as evidenced by the latest UK Finance stats, which showed a slight increase in buy to let mortgages in arrears.

Tenants, too, are facing challenges, with the number of available rental properties at a 15-year low.


Share This Article


Comments

Disgrunteld Landlady

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

8:32 AM, 13th November 2024, About A week ago

This is a shocking stat but only to be expected with the current and last Government's war on landlords/ladies.

Whilst it is very obvious.. it just struck me the other day.. female, blonde .. bear with Me! but there is constant headlines of rent increases there is not constant headlines of our cost increases, interest rates and utilities - I've hiked my rents by a good 30% by firing my useless Agent so I can start to cover the increased costs imposed on us over the last few years.

PETER harvey

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:00 AM, 15th November 2024, About 6 days ago

i cannot understand why only court baliffs can be used for eviction purposes when the courts are running so slow. as long as they are certified bailifs with a knowlede of the eviction procedeure what is wrong with that.

just to keep the homeless from flooding the council
offices and spacing out the procedure. it is ridiculous. all this waiting time with the courts.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More