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Posted by Let Alliance on September 2, 2015
Regardless of whether you believe facing rent arrears is a challenge to your business, it is, and by reading on you will find out why.
Letting agent fees are often held responsible by the general public for the alarming increase seen in rent arrears throughout the UK, by suggesting these fees lead tenants to financial difficulties, however it should be alerted to industry critics that rent arrears are still on the rise, even in places where the banning of letting agent fees has been implemented.
A study by LSL Property Services showed in the final quarter of 2014 there were 68,100 tenants in severe rent arrears of more than two months, an annual rise of 7.2%. Subsequent to the banning of letting fees in Scotland in 2012, recent figures have emerged from the letting agent Your Move to suggest a recent increase in the form of arrears from 8.8% in May up to 9% in June. The industry must take action to effectively resolve the growing concerns that private landlords are facing in regards to rent arrears.
Let Alliance’s data regarding rent arrears is showing no increase in claims in frequency in Scotland over and above England and Wales either, due to the market leading services offered to Let Alliance customers to minimise the risk of rent arrears adversely affecting their customers, and thenceforth their business.
The RLA implies that its biggest concerns lies with sanctions imposed on Job Seeker Allowance and Employment Support Allowances believing claimants are unfairly leaving PRS landlords with mounting arrears which then prompts suspensions and cancellations of Housing Benefit claims when there is little justification for this.
The most alarming statistic brought to our attention is that evictions fall in the face of recent rent arrears, with the latest eviction orders down 6% on a quarterly basis. Letting Agents have a duty to advise and protect their landlord customers in the PRS through ensuring a thorough referencing process and advising on high quality rent guarantee services.