By Luzita Naidoo, 16th February 2010
A worryingly large amount of tenants are falling behind with
rental payments, says the Association of Residential Letting Agents
(ARLA).
Results from the latest ARLA survey show 55 per cent of
landlords have experienced an increase in tenants battling with
rental payments.
Ian Potter, Operations Manager of ARLA, said: "Unemployment has
been the primary factor behind rental arrears throughout the
recession. If the jobless total rises in 2010, it is inevitable
that the number of tenants forced to default on their rent will
also increase".
As residents get deeper and deeper and arrears, they run the
risk of being evicted from their property. At the same time,
landlords could be forced to default on their mortgage repayments
which would ultimately lead to the property itself being
repossessed.
Mr. Potter further added that as the housing market continues to
pick up as demand begins to exceed supply, there is likely to be an
increase of new landlords and properties in the rental sector.
"It is crucial that agents engage in a careful selection process
for both tenants and landlords, and ensure the relevant contracts
and agreements are in place" Mr. Potter explained.
The ARLA licensing scheme, aims to enforce a higher standards in
the letting industry. However they believe that the Government must
also act to create uniform legislation to nurture the improving
housing market and protect both consumers and landlords.
Useful links:
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