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Posted by Let Alliance on February 4, 2014
The number of tenants in severe arrears (more than 2 months behind) rose by 3.4% in the final quarter of 2013, the latest Tenant Arrears Tracker from LSL Property Services has revealed.
There are now 67,000 tenants in severe arrears compared to the third quarter of 2013 when there was a sharp improvement at 65,000. Those owing more than 2 months’ rent in the final quarter now represent 1.6% of all tenancies in England and Wales, up from 1.5% in the third quarter.
According to LSL’s latest Buy-to-Let Index, overall tenant arrears fell in November, with 6.6% of all rent late or unpaid. This compares with 7.1% of all rent in the previous month.
Annual improvements in severe tenant arrears are yet to feed into eviction rates. According to the most recent data the number of tenants facing eviction through court order rose in the third quarter of 2013, with a total of 30,807 tenants facing eviction notices. The represents a quarterly increase of 11%.
David Brown, commercial director of LSL Property Services said, “Red hot returns from many buy-to-let investments are offering landlords a burning incentive to invest further. Even as rents rise, the trend of the last 5 years indicates most tenants can increasingly afford to live in the private rented sector.”