According to the latest Tenant Arrears Tracker by LSL Property Services PLC, tenants are rebuilding their financial position, with the total number facing serious rental arrears falling by a significant 9% over the last twelve months
David Newnes, director of estate agents Your Move and Reeds Rains, comments:“The private rented sector has mustered enough new capacity to meet, in part, the growing demand for affordable housing, through the greatest economic depression in modern times. This isn’t just about those relatively prosperous households forced to put ownership plans temporarily on hold. For many thousands of others, with far tougher monthly budgets, private tenancies have also provided a lifeline. For many renting is now their chosen route as it provides flexibility and mobility.
“Gradual rent rises, on a par with inflation, have helped. But now a bigger turnaround appears to have happened. For many years more momentary cases of rent arrears have been in decline, yet it’s only recently that the most serious cases – where families could actually lose their homes – are following suit.
“One explanation is the improving jobs market, with the improvement in unemployment constantly outperforming expectations. Wages would however need to rise faster for most households to feel the full effects of economic recovery. Reduced unemployment levels would seem to be far more beneficial for those households who are struggling the most.”