Tenant arrears at highest in four years
The rate of growth in the number of tenants in severe arrears is slowing, but nevertheless rose by 1.6% in the third quarter of this year. There are now 99,000 tenants in arrears of two-months plus – the highest since 2008 and 15% more than last year.
The figures are from Templeton LPA, a specialist practice of LPA Receivers and part of LSL.
Tenants in severe arrears represent 2.5% of tenancies in England and Wales.
Although severe arrears cases climbed steadily last quarter, overall tenant arrears fell slightly in August, with 9% of all rent late or unpaid, the first improvement in this measure in three months.
Despite the steady growth in severe tenant arrears so far this year, there was a slight reduction in the number of tenants who faced eviction through court order on a quarterly basis.
In the second quarter of 2012, 25,422 tenants faced eviction notices, a quarterly fall of 6% compared to the previous quarter, reversing the previous 6% quarterly increase. However, evictions remain 8% higher on an annual basis.
The number of buy-to-let mortgages over three months in arrears fell by 7% to 22,000 by the end of the second quarter of 2012, compared with a previous quarterly fall of 4%. On an annual basis, cases of buy-to-let mortgages more than three months in arrears fell by 21%.