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Increase in tenants struggling to pay their rent

Wednesday, 12 January 2011 12:51 PM

An increasing number of UK tenants are falling behind with their rent, according to a nationwide survey of letting agents.

According to new research from the Association of Residential Letting Agents (ARLA) and carried out in the fourth quarter of 2010, 40 per cent of members noted an increase in tenants struggling to meet rental payments.

This represents an increase from 35.9 per cent in the previous three-month period and the first time that the number has risen in 18 months, suggesting that job losses and pay cuts are beginning to impact upon tenants' finances.

The problem was least noticeable in Central London, where just over a quarter of members reported a rise, compared to the rest of the UK, which saw an average of almost half of renters experiencing difficulties.

Ian Potter, Operations Manager at ARLA, said: "At the beginning of last year we predicted that the number of tenants having difficulties paying rent would increase and unfortunately, this seems to be the case today.

"It is a situation which can have serious repercussions throughout the private rented sector as, without guaranteed rent income, landlords may also have problems paying mortgages. At worst, it may result in a rise in repossessions," he added.

ARLA's research also showed a rise in the number of tenants 'haggling' with landlords over rents, further highlighting the financial pressures currently facing those who rent property.
 

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