A Third of Tenants In Arrears

by Peter Wakeford
Posted by Hannah on 30 March 2009
A Third of Tenants In Arrears

A third of tenants have missed rent payments, which the National Landlords Association (NLA) suggests is partly responsible for the recent rise in repossessions.

A growing number of tenants are falling behind with rent, which is forcing some landlords to miss mortgage payments, the National Landlords Association (NLA) has said.

The property industry organisation has revealed that 44 percent of landlords have reported cases of missed rental payments from tenants over the six months.

Despite this, just 50 percent of landlords said they take legal action in an attempt to recover the lost earnings. As a result, some landlords are struggling to meet monthly mortgage repayments, which the NLA suggests partly explains the recent increase in repossessions.

"This is becoming a serious problem for landlords all over the UK" NLA chairman David Salusbury said. "Paying the rent has to be right at the top of tenants' priorities as even one month's arrears, in this climate, could be the straw which breaks the camel's back.

"The mortgage has to be paid and the vast majority of landlords do everything in their power to make sure this happens."

He called for improved communications between landlords and tenants to tackle potential missed rent payments and any subsequent mortgage arrears.

Several organisations are calling for a review of the rental sector to support tenants who may face eviction if landlords default on their mortgage.

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