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Posted by Let Alliance on September 19, 2011
Rents rose by their fastest rate in a year in August, bouncing up 1.2%, whilst tenants arrears grew in pure money terms by 19.5%.
The findings are in this morning‚Äôs new buy-to-let report from LSL, which owns national chains Your Move and Reeds Rains.
It says that 10.7% of all UK rent was unpaid or late by the end of August ‚Äì up from the 9% of rent unpaid or late in July.
Unpaid rent totalled an estimated ¬£300m across the UK in August, up 19.5% from the ¬£251m unpaid in the previous month.
The mounting arrears come as the average rent in England and Wales rose by 1.2% to ¬£713 per month, surpassing the previous record high of ¬£705 in July. It means the average rent was ¬£27 pcm higher than in August 2010.
Paul Pearce, Sales & Marketing Director of Let Alliance said ‚ÄúThe findings from LSL Property Services highlight the clear need for Landlords to seriously consider Rent Guarantee insurance‚Äù.
Pearce continues, ‚ÄúWith the economic climate continuing the way it is and unemployment yet again on the rise, increased inflation, this all puts serious pressure on rent payments.¬† At Let Alliance we provide Letting Agents across the UK with NIL Excess Rent Guarantee Insurance which is payable until Vacant Possession AND includes references and Legal Expenses cover‚Äù.
Source:¬†www.landlordtoday.co.uk/news_features (16th Sept 2011)