Number of Tenants in Arrears is Increasing, Research Shows

Research conducted by the National Landlords Association (NLA) of their members has found that landlords with an average portfolio of 12 lettings, has four tenants in arrears with an average of £2,363 owed.

The research indicates the problems caused by the existing economic downturn, which has left many people with financial worries, and struggling to pay their household bills.

The NLA found that just under half (49%) of 546 landlords surveyed online last month had experienced rental arrears over the past 12 months,while 37% are worried about arrears over the coming months.

The research also revealed the impact on smaller landlords. Of those with only one letting, 16% are making a loss on their investment.

David Salusbury, chairman of the NLA said: “It is a sign of the difficult economic conditions that so many landlords are experiencing rental arrears.  Short term instances of arrears can often be resolved with a sensible repayment plan or a temporary reduced rent arrangement.  It is in landlords’ best interests to help tenants through tough financial times where possible.”

David Lawrenson, private rented sector expert at, recently explained how the economy is having an effect on the number of arrears in the market.

Mr Lawrenson recommended that landlords should be understanding of their tenants’ financial woes and support them in any possible way.

He added that the two parties should hold talks in order to discuss any potential problems.

The NLA has recommended a range of measures to help landlords who are experiencing arrears, including carrying out background checks, taking deposits and building better relationships with their tenants.

A survey by estate agency network LSL Property Services earlier this month showed that the average rent in England and Wales went up by 0.9% to £718 per month from May to June this year.


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