The Rent’s Going Up!
Good News for UK Landlords as Rents Increase and Rent Arrears Fall
Rents rose for a second consecutive month in May to stand at an average £712 per month in the UK, returning to the same level as in January 2012.
According to the latest Buy-To-Let index from LSL Property Services, the 0.4% rise in May means that rents are now 2.3% higher than in 2011.
Added to this piece of good news for UK landlords comes the news that overall UK tenant rental arrears have also improved after the seasonal increase in April 2012, with 8.9% of all rent late or unpaid at the end of the month, down from 9.9% in March 2012.
In total, unpaid rent in May amounted to £275 Million (GBP), down from £306 Million (GBP) in the previous month.
Commercial Director of LSL Property Services, David Brown, warned: “Rental arrears took a turn for the better in May. However, with the economy struggling and the UK labour market far from flourishing, households will remain under financial pressure, and it is crucial PRS landlords are not caught flat-footed by any deterioration in tenant finances.”
Legal 4 Landlords offer Rent Guarantee insurance for landlords and letting agents who use their Tenant Referencing services to help keep landlord’s cashflow constant despite any change in the financial circumstances of the tenant, thus avoiding tenant default and ensuring minimum impact on the landlord’s business.
