Tenant Eviction Service Providers Helpland react to news of increased numbers of rent arrears.
(1888PressRelease) August 06, 2011 - Concerns have been raised within the UK rental property sector over a national spike in rent arrears of over 11%. Research from receivers Templeton LPA has shown hat serious cases of rental arrears were up by 13% during the second quarter of this year when compared to figures from 2010. Tenant eviction also increased by 9% during the same quarter.
By January this year, the national media were reporting that arrears had surged over the Christmas period, standing at 11.7 %, up from 9.7% the previous month. UK landlords were collectively owed £276 million during December 2010. By April, the percentage had climbed to 11.8%, with a total of £284 million owed throughout the country. In May, the National Landlords Association issued a rent arrears warning, following research into the level of arrears during the previous year. Over half of those responding to their researchers had experienced arrears. On average, the amount owed per individual tenant stood at £730. The rise in tenant eviction could be further sustained for a number of reasons. Chairman David Salusbury warned that housing benefit cuts could exacerbate the problem, noting that some respondents had received no rent at all during the last year. He further warned landlords that prolonged rental arrears could negatively impact their ability to pay their own home mortgage.
"The problem is that no matter how good the relationship is with your tenants, if redundancy strikes, they may simply not be able to pay. It can then leave landlords in a terrible scenario. The vast majority of course would prefer never to have to evict tenants. But the reality is that they simply are not able to cope financially with the effects of prolonged rent arrears," saidLee Daniels of Helpland Limited, a national advice service for Landlords.
The peak in arrears is being partly attributed to increasing job losses, particularly those in the public sector due to the Government's austerity measures. With unemployment a major factor behind rent arrears, many landlords may now be at risk.
Concerns have also been raised about a new development within the private rented sector. Over half of all private rental tenancies are composed of at least one recipient of the Local Housing Allowance (LHA). In the three months prior to June this year, LHA tenants have owed landlords and average figure of £210's worth of rent. Planned cuts to the benefit system are likely to exacerbate this situation. It has been reported that some larger families will be left with less than £70 a week to pay for accommodation - a situation which is particularly unsustainable in areas where rents are typically far higher, such as London.
"Landlords could be suffering due to a number of causes right now, whether it is because of benefit caps, or working tenants who are in financial difficulties. The most important message is landlords must gain professional advice before the situation becomes desperate. Should the need to evict tenants arise, use a professional service to handle the matter on your behalf. It can avoid a great deal of personal strain. Most landlords don't want to evict tenants alone. It's also vital to follow the law to the letter - there are severe legal penalties against landlords who fail to do so. The courts have and will enforce these. No matter how serious the arrears are, you simply cannot afford to take the law into your own hands" Concludes Mr Daniels.
Landlords can gain free advice on all matters related to tenant eviction by calling Helpland on 0845 450 0536, or send an email by visiting: http://www.helpland.co.uk
Tenant Eviction Service Providers Helpland react to news of increased numbers of rent arrears. 
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