This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
A concerning new report has indicated that there was a sharp increase in rent arrears during June.
The survey, compiled by Your Move and Reeds Rains suggests that rent arrears made up 8.7% of all rent payable last month. This was noticeably higher than the 7.6% recorded in May of this year, and the 7.8% posted one year ago.[1]
Increases
Additionally, the agents suggest that annual rent increases hit 5.6% across both England and Wales during the last month. This represents the quickest increase since the firms began to record these figures in 2009. What’s more, the agencies say that rents are growing quicker than house prices on an annual basis, for the first time since July 2013.[1]
Average rental costs across England and Wales reached £789 last month, 1.4% higher than the £778 recorded in May.[1]
Rent arrears rise during June
In London, rents have totalled a record high of £1,241, up a substantial 9.6% on the same time twelve months ago.[2]
Spokesperson for the agency, Adrian Gill, believes that further rent increases could be imminent. ‘In the wake of the Summer Budget’s reduced assistance for landlords, we might see many aim to pass additional costs onto their tenants. If so, rents would receive yet another acceleration,’ Gill stated.[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/sharp-rise-in-arrears-as-rents-soar-say-letting-agents
[2] http://www.propertyindustryeye.com/rents-rising-at-fastest-rate-on-record-as-arrears-jump/
