Rent arrears occur in just 0.5% of tenancies managed by Sewell & Gardner Lettings. Industry insiders have compiled new figures regarding the number of tenants who are struggling to pay their rent and reveal during the last year it has risen by a quarter! Further revealing that 49% of UK landlords have experienced rent arrears in the last 12 months. The rental market is booming at the moment, so rents are higher than ever and more people are finding themselves getting into arrears with their landlords, on average one out of three rental properties has tenants in arrears.
The report claims that more than 100,000 people are in significant arrears that means there are 100,000 tenants who are more than two months behind with their rent, which is around 24% higher than this time last year.
The amount of renters who were facing severe, wider financial difficulties were up by 8% during the second quarter of the year. There are several different factors that could be contributing to this increase. Average wage rises are moving behind inflation, which means that many people are left out of pocket as the cost of living has risen, without pay rising quickly enough to pay for the difference. This has left many tenants paying out more money and consequently getting into more financial difficulties.
A 6% increase in the amount of eviction notices issued by courts when compared to the 2011 figures.
At Sewell & Gardner we have taken a tight grasp on these figures and ensured that all our managed properties are given the attention required throughout all our tenancies. I believe communication to be the key element behind this.
As part of our customer care, communicating regularly with our tenants ensures our tenants know they can inform us and keep us updated with their changing circumstances so we can guide them as necessary. Here at Sewell & Gardner we also like to keep a close relationship with our landlords by frequently discussing with them their portfolios and updating any necessary information in a swift manner. Our attentive referencing at the beginning of each tenancy plays a big role in ensuring our tenants and landlords meet a suitable match. In addition we ensure all our managed properties have rent guarantee insurance as a standard procedure.
As the private rented sector grows, the number of tenants in financial quandary is steadily climbing. As we have proven thus far we intend and will continue to keep a tight grip on maintaining our figures and keeping them to a minimal if not non-existent figure.