Home > Landlord Insurance > Rental arrears hit 4-year high

Rental arrears hit 4-year high

October 23rd, 2012

The amount of tenants encountering rental problems is further increasing as arrears have reached their highest levels in four years.

According to the government’s quarterly court statistics, this high figure of people in debt is leading to a rise in landlord possession claims as many consumers struggle to keep up with their monthly payments.

Officials at Letrisk, the company behind the research found that there were 25,422 landlord possession claims in the second quarter of 2012 with Gloucestershire being the area that saw the highest rise in this sector, noting a 29 per cent increase in cases.

It comes after a study by LSL Property Services revealed that the average renting cost had grown to £741 a month meaning people had to further tighten their belts.

Michael Portman, managing director of LetRisks, said: “Many tenants have fallen on bad times and have no financial resources to clear arrears debt has led many agents and landlords to pursue possession only, foregoing any attempts to secure rent arrears through the courts.”

Prepare for the challenges of becoming a landlord with landlords insurance from Discount Landlord.

Bookmark and Share
Author: Categories: Landlord Insurance Tags:
Comments are closed.