9:00 AM, 23rd October 2012, About 9 years ago
Landlord possession claims increase as rent arrears are at their highest level for four years. The Government’s quarterly court statistics show that in the second quarter of 2012 there were 25,422 landlord possession claims that led to an order being made.
Since 2010 orders made in England and Wales are up by 8% with Gloucestershire and Hampshire being hardest hit with both suffering increases of 29%. Figures from Templeton LPA show there are now 99,000 tenants in arrears of two months plus, which is the highest level since 2008 and a 15% increase on last year.
Michael Portman, Managing Director of LetRisks commented:
“We have seen a sharp increase in demand for rent guarantee insurance as landlords and agents look to find ways to protect their rental income. It is clear that this problem is not going to go away and we expect tenant arrears cases to continue climbing during the remainder of this year.
“The double-dip recession is putting huge pressure on the nation’s pockets. Rising fuel and food, unemployment and increased rents is putting tenants in difficulty.”
“Many tenants have fallen on bad times and have no financial resources to clear arrears debt has led many agents and landlords to pursue possession only, foregoing any attempts to secure rent arrears through the courts.”
“For many Landlords and agents, they face better odds securing new tenant rental income than they do securing rent arrears from an existing tenant.”
“My advice to landlords and agents is make sure that they consider the strength of the tenant when letting the property by taking out full references and to consider specific insurance through a specialist company for loss of rent if the tenant defaults and the cost of legal expenses.”
LetRisks has compiled 10 tips to help minimise the risk and disruption for landlords and agents:
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