Paul Shamplina of Landlord Action comments on Rent Rises and its effects on Tenant Arrears

publication date: Sep 30, 2011
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author/source: Guest article from Landlord Action
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Arrears of Rent


Paul Shamplina of Landlord Action comments on Rent Rises and its effects on Tenant Arrears


Many surveys have been published reporting rising rents throughout the UK, and one in particular by LSL Property Services has pointed out that, as well as the cost of renting a home rising at its fastest rate in a year, tenant arrears increased for the first time since April. Paul Shamplina, founder of tenant eviction specialists Landlord Action, comments on the figures they are seeing and what tenants should do if faced with financial difficulties.

Paul says "We have definitely seen an increase in rent arrears instructions from landlords in line with recent data from the survey suggesting that 10.7% of rent is now unpaid. This is increasing all the time, and with a rental market that is very buoyant with average rents at an all time high we will, unfortunately, see tenant arrears figures continuing to grow nationally.

"It is quite clear that first time buyers are squeezed due to being unable to attain mortgages and credit, and are therefore renting longer. It has been suggested that by 2020 the number of people renting could rise to 20%. It would appear that we are looking at the next generation of renters, and are falling in line with the rest of Europe."

When looking at why so many people are falling behind on their monthly payments, Paul says it is not just down to rising rents, and that many people are already in a financial rut.

"With job losses and the general stagnating of wages some tenants are struggling to make ends meet on a daily basis. This coupled with rising utility bills and the general cost of living is a recipe for tenants to fall into arrears. On the other side of things, landlords will also be struggling and will be less tolerant of tenants not paying their rent on time. Therefore, my advice to both tenants and landlords is to have an immediate dialogue as soon as a problem with rent arises. Tenants need to be honest as to why rent hasn't or won't be paid. Rather than undertaking legal proceedings, it is always better to see if there is a way to mediate the problem first."

Paul Shamplina, Founder of Landlord Action
Tel:
 0208 906 3838
www.LandlordAction.co.uk

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