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April 2014 Tenant Arrears Tracker

April 4, 2014Tags: tenants | arrears

Households facing serious rent arrears fall by a third 

- Cases of tenants severely behind on rent have fallen by one third (35%) in last twelve months
- 68,000 households remain seriously behind with rent payments, compared to mid-2012 peak over 116,000
- Number of landlords in mortgage arrears reaches lowest level since mid-2008
- Progress starts to be reflected in number of evictions, as court orders fall 3% in final months of 2013

Overview
Tenants struggling with late rent have made significant progress in the last twelve months, according to the latest Tenant Arrears Tracker by LSL Property Services plc, owners of Templeton LPA, the specialist practice of LPA Receivers.   (Based on analysis of LSL and English Housing Survey data.  Data subject to revision. Quarterly figures revised since last edition as more data became available)

As of the first quarter of 2014, the number of tenants in severe arrears – those more than two months behind on their rent – stands at 68,000, down from 105,000 in the same period last year.  Representing a 35% annual improvement, this comes despite an 11.1% seasonal increase in cases of severe arrears between Q4 2013 and Q1 2014.)  

Comment
Paul Jardine, Director and Receiver at Templeton LPA, comments: “Personal finances are finally defrosting across the UK, with many people experiencing the first real financial spring for half a decade.  Tens of thousands of households are looking forward to a slightly more comfortable year in 2014, without the lurking anticipation of serious rental arrears.

“It’s true there remains a long way to go.  Certainly, for any particular tenant still facing serious hardship, this won’t yet feel like an improvement.  And the seasonal difficulties of the festive period and New Year have taken their usual toll.  But a clear positive trend is emerging.   With three successive quarters showing a sharp annual improvement in the number of such cases, the chance of tenants falling so far behind is receding.  Slowly but surely a brighter economic picture is breaking through the gloom and is starting to make a real difference to purse strings across the country.”

Read the full tracker