Landlords are owed an average of £725 in arrears

Landlords are owed an average of £725 in arrears

9:31 AM, 16th January 2024, About 3 months ago 4

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A survey has found that nearly 60% of UK landlords have seen a rise in late rent payments due to the current financial situation, and that landlords are each owed an average of £725 in arrears.

The research from digital mortgage lender Molo also reveals that one of the main concerns for landlords in 2024 is the possibility of tenants not being able to pay their rent, with 44% saying this is a major source of stress for them.

The survey showed that landlords face an average of 2.9 late payments per year, but this varies across different regions.

For example, landlords in Yorkshire and the North East have the most late payments, with an average of 3.4 per year.

However, landlords in Greater London are owed the most money, with an average of £806 in arrears – due to the higher rents.

‘Landlords have seen an increase in late rent payments’

The firm’s VP of strategy, Mark Michaelides, said: “Nearly two-thirds of landlords have seen an increase in late rent payments due to the cost-of-living crisis, but this doesn’t always have to lead to extreme measures against tenants.

“As a tenant, it’s important not to ignore the problem.

“I’d advise tenants to communicate promptly, explaining reasons for delays and requesting additional time. Open dialogue can lead to collaborative solutions.”

He added: “Our research found that over half (54%) of landlords have implemented payment plans for tenants facing late rent.

“Additionally, tenants can explore government schemes and seek guidance from organisations like Shelter or Citizens Advice for free support and advice.”

Landlords in the East of England are owed £770

The findings also show that landlords in the East of England are owed £770, and in the East Midlands it is £760, while landlords in the North West are owed the least, with an average of £661 in arrears.

The cost-of-living crisis has also affected the rental market in other ways with 56% of landlords having tenants leave because they could not afford the rent.

Another 55% of landlords say they have lowered the rent to help tenants cope – which rises to 68% for landlords in Greater London and Yorkshire, who have been the most generous in reducing the rent.

Molo says landlords can support their tenants, such as offering flexible payment plans, communicating regularly and being understanding of their situation.


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Comments

Martin Roberts

18:17 PM, 16th January 2024, About 3 months ago

So landlords can support non-paying tenants by ‘communicating regularly'.

I can hear the shrieks of, ‘harassment'.

Jim K

9:52 AM, 17th January 2024, About 3 months ago

It would be interesting to understand the scale of the issue by rental.
There is really no such thing as the average landlord.
It would be slightly easier if average were defined- 3 lets at £750 pcm etc

Jim K

9:54 AM, 17th January 2024, About 3 months ago

Reply to the comment left by Martin Roberts at 16/01/2024 - 18:17
I think chasing up debt (at reasonable times) is excluded ftom the ddhinition of harassment

JC

8:44 AM, 20th January 2024, About 3 months ago

Not many tenants cannot afford to pay in my experience maybe 5% of debtors.
Most choose not to pay and buy a new car, tv, sofa etc instead.
They treat their landlord as a credit facility and basically only pay when enough pressure is applied.
Don't waste your time or energy trying to solve this.
If a tenant does not repay rent arrears in timely fashion then issue a S.8 notice and a S.21 notice
and move onto a new tenant with less problems.
Simple.

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