Landlord News,Tenant News

Increase in rent arrears during May, according to Telegraph Money research

Em Morley - June 5, 2020

Research undertaken by lettings platform Goodlord for Telegraph Money has noted an increase in rent arrears during May.

The results show that 6.6% of the 16,000 rental properties included in the survey were in arrears for a minimum of one week during last month. In comparison, the arrears rate for April was 5.8% and the overall typical rate sits at 4%.

With around 4.6 million private rented homes in the country, this figure suggests more than 300,000 tenants are struggling with rent payments.

Franz Doerr, CEO of flatfair, has commented: “As more firms start to furlough staff and others cease trading due to the economic impact of the virus, swathes of young renters up and down the country will see their incomes plummet and may not be able to pay their rent. The mounting rent arrears crisis will get worse before it gets better.

“This may, in turn, see many landlords struggling to meet their own obligations such as mortgage repayments. Landlords and tenants alike need to be given the space to negotiate repayment plans that ensure that everyone is treated fairly.”

Landlords are still currently unable to evict tenants for falling into arrears with rent payments due to an overall ban on evictions. This is scheduled to end on 25th June, with Generation Rent calling for an extension.