Rent arrears rise again say letting agents
Published ¤ 21/01/2011 10:32:01
According to property firm LSL, nearly 12% of all rent remained unpaid or was paid late in December 2010.
LSL said that the arrears are now at their highest level since December 2009, and expect them to get worse.
David Newnes of LSL commented "Arrears have been rising since October as public sector spending cuts start to bite in many areas of the country.
"With unemployment set to increase this year, and rents likely to rise once more in the spring, more tenants will be at risk of falling behind with rent payments."
LSL owns letting agents such as Your Move and Reeds Rains and says rents are now 3.8% higher than a year ago.
With the increase in tenant arrears, and the lack of availability of decent mortgages for buy-to-let properties, rent protection has become much more popular.
Paul Skinner, from PKS, an independent mortgage and insurance broker in North Hampshire, comments "We have seen a dramatic increase in the number of enquiries for our landlord insurance products, especially rent insruance. These products can pay out when a tenant defaults on their rent.
"With unemployment expected to rise over the next year, especially within the public sector, we expect to see the number of rent arrears rise significantly throughout 2011.
"When considering a new BTL investment, it is important to get independant mortgage advice from a broker that also specialises in landlord insurance. It is also important to understand your rights as a landlord when it comes to rent arrears. Evicting a tenant is not an easy job, and it can also be very expensive."
Whether you are considering buying a new BTL property, or are an experienced landlord, speak to PKS about our landlord insurance, to see how we can help.
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