A recent survey has shown that around 100,000 renting tenants in England and Wales are overdue on their rent payments by two months. It is estimated that in the second quarter of this year the number of tenants who were in a serious amount of financial difficulty rose by nearly 10 percent.
Those who are more than two months behind in their rent payments are known as being in ‘severe arrears,’ and it has been estimated at 100,000 people are in this situation. When you compare this with the same period for 2011 this is an increase of nearly 25 percent. Furthermore, it is the highest number of people who’ve been in arrears of rent since 2008.
In the first quarter of this year the number of courts ordering the tenants should be evicted has increased by over five percent. This is a notable increase on the final quarter of last year. These figures have been compiled by Templeton which is part of the LSL Property Services group. The information has been worked out after a sample of 20,000 tenants from the company was assessed.
The director of the company, Paul Jardine has commented, “The private sector is growing at a significant pace and this has seen more tenants have serious problems with their finances. In real terms people’s wages are falling and with the rising rents, people are finding they simply cannot meet the payments.”
Mr Jardine also commented that landlords are obviously not pleased with the situation, but the fact that mortgage rates are incredibly low is easing the financial pressure that they might be facing because of this lack of payment.