June 07, 2011
The Government’s recent overhaul of housing benefit provisions has lead to an increase in the number of late rent payments over the past year, research by the National Landlords Association has found.
In total, 52% of landlords have reported rent arrears in the past 12 months, a survey of nearly 600 landlords has found, with the average late paying tenant owed £730 in rental payments.
“It is concerning that more than half of landlords have received late rent payments or no rent at all in the past year. The Government cuts to housing benefits will only put further pressure on tenants who are struggling to pay the rent on time,” said David Salusbury, Chairman, National Landlords Association.
“Landlords are unable to absorb this cost of rent arrears long term as they have their own financial commitments such as mortgage repayments, which could increase further with the predicted rise in interest rates.
The research also found 62% of landlords believe running a lettings business is becoming more difficult, and Mr Salusbury has encouraged those struggling to seek advice to “help them run their lettings business.”
