Rent arrears fall by 16% since the financial crisisMake Text Bigger
The number of tenants falling into serious rent arrears has been decreasing, according to the latest report.
Tenants renting their homes from private landlords are less likely to suffer from a serious build-up of late rent as a result of falling unemployment levels.
Only 86,200 tenants across the UK were more than two months behind in their rent in the first quarter of 2016, compared to 89,300 in the previous quarter – a decrease of 4%.
This figure is now lower than the long-term average of 92,600 tenants, according to the report from Your Move and Reeds Rains.
124,800 households owed more than two months’ rent in quarter three of 2012 which was when serious rent arrears were at their peak. At this time, unemployment in the UK was 7.9%.
An increase in employment has been why many tenants have been able to improve their rent arrears situation.
“This report brings good news for tenants but also for landlords who may have experienced their tenants defaulting on rental payments in recent months. Rent Guarantee & Legal Expenses insurance can protect against missed payments and is a valuable investment for any landlord,” said a spokesperson for Property 118’s landlord insurance provider Discount Insurance.
Since the start of the financial crisis and recession in 2008, the number of tenants more than two months behind with rent has fallen by 16% from 102,900.
At the start of 2008, there were 3.6m households living in the UK private rented sector, however this has grown by 62% in eight years to reach a total of 5.8m as of quarter one in 2016.
This has led to positive results in other areas as well with the number of eviction orders issued having dropped considerably.
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