Numbers of tenants getting behind with their rent is 13% up in a year, with 75,000 landlords owed millions in arrears.
The total is still growing as the number of tenants in arrears increased by another 4% in the second quarter of 2011 – up from 71,483 in the first three months of the year.
Landlords are also showing less sympathy for tenants as vibrant demand as court orders for evictions has risen by 9% in a year.
Buy to let owners are managing their tenants better as well. Mortgage arrears are down 12% in the year for landlords.
“Tenant finances are under pressure. Rents have risen consistently to a record high and the cost of living is taking its toll. Many tenants on lower incomes are falling behind with monthly payments,” said Paul Jardine, director and receiver at Templeton LPA, the firm conducting the research.
Jardine also praised landlords for demonstrating improved cash flow management.
“Tenant finances will continue to be placed under pressure, and it is crucial that landlords do not delay in contacting tenants to nip any potential payment problems in the bud as amicably as possible. Otherwise, buy-to-let mortgage arrears will begin to climb as the year progresses.”
Sellers are trying to grab the best of both worlds by offering their properties for sale or rent at the same time, according to Countrywide, one of the UK’s leading estate agents and letting agents.
Numbers of tenants seeking new homes increased 20% in May, a 28% increase over a year ago. Homes available for rent also rose by 15.5% from April to May.
Chief executive Grenville Turner said: “The hesitant sales market has an increasing number of homeowners considering dual marketing their properties in the sales and the rental market to see the greatest financial value.”
Another study by buy to let lender Paragon disclosed rents have gone up during the second quarter of 2011.
Around 13% have put up rents by by between 2% and 4%, while 4% increased rents by up to 6%.
Chief executive Nigel Terrington said: “Landlords with high demand have increased rents without making accommodation unaffordable.
“Demand for privately rented property shows no sign of slowing down with 40% of landlords believing tenant demand is either growing or booming, and will continue to do so for the next 12 months.”
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