The number of tenants in severe financial difficulty climbed by 8% in the second quarter of 2012, with over 7,000 more tenants over two months in arrears than in the first three months of 2012, according to the latest Tenant Arrears Tracker by chartered surveyors Templeton LPA.
In the second quarter of 2012, an average of 100,400 tenants in England and Wales were in severe arrears – an increase of 24% compared to a year ago. This is the highest number on Templeton LPA’s records, which go back to 2008.
“As the private rented sector grows, the number of tenants in dire financial straits is steadily climbing," said Paul Jardine, director and receiver at Templeton LPA. "Falling wages in real terms have been compounded by rising rents, pushing a greater number of rented households over the edge financially. With the instability in the labour market and wider economy, and public sector cuts still to come, the section of renters in multiple months of arrears is likely to continue its expansion."
Although the number of severe arrears cases (tenants with arrears of more than two months) continues to climb, the general level of tenant arrears across the entire market has improved, with 8.9% of all rent in the private rented sector late or unpaid by the end of May, a decrease from 9.9% at the end of April.
“As the private rented sector grows, the number of tenants in dire financial straits is steadily climbing," said Paul Jardine, director and receiver at Templeton LPA. "Falling wages in real terms have been compounded by rising rents, pushing a greater number of rented households over the edge financially. With the instability in the labour market and wider economy, and public sector cuts still to come, the section of renters in multiple months of arrears is likely to continue its expansion."
Although the number of severe arrears cases (tenants with arrears of more than two months) continues to climb, the general level of tenant arrears across the entire market has improved, with 8.9% of all rent in the private rented sector late or unpaid by the end of May, a decrease from 9.9% at the end of April.
No comments:
Post a Comment