Legal News
The rental arrears for the UK landlords has been rising over last year and is expected to occur in the future too (7 August 2012)
Date: 07/08/2012
The National Landlords Association has revealed that rental arrears for the UK landlords were rising.
The NLA's survey found that 49 per cent of landlords had experienced rental arrears in the last year, while 37 per cent were worried about arrears occurring in the near future.
According to the research, an average NLA member landlord, with an average portfolio of 12 lettings, has 4 tenants in arrears and the average arrears owed by tenants is £2,363. As might be expected, landlords with larger portfolios have greater amounts owed to them.
Arrears problems are also affecting small scale landlords with one letting, including accidental landlords, who make up a large proportion of all landlords. In fact, 16 per cent of landlords with one letting were making a loss on their investment.
David Salusbury, NLA Chairman, said that it was sign of the difficult economic conditions that so many landlords were experiencing rental arrears. Under the circumstances the landlords should work with their tenants to minimise the blow of financial stress.
Where the arrears are of short term it could often be resolved with a sensible repayment plan or a temporary reduced rent arrangement. It is in landlords' best interests to help tenants through tough financial times where possible.
Those landlords who work in tandem with their tenants towards sustaining the tenancy for the long term would encourage prosperous tenancies.
He added that it was professional and collaborative working that was going to help ensure the private-rental market remained a promising investment opportunity, which in turn could help bring the economy back to an upward trend.