Up to 10% of tenants have rent arrears, letting agents report

first_imgHome » News » COVID-19 news » Up to 10% of tenants have rent arrears, letting agents report previous nextCOVID-19 newsUp to 10% of tenants have rent arrears, letting agents reportPoll of industry by Safeagent reveals higher rent arrears including a significant number who are refusing to pay their rent.Nigel Lewis15th October 20202 Comments1,099 Views A poll of letting agents has revealed that two thirds report up to 10% of their tenants have rent arrears.The survey by industry accreditation scheme Safeagent suggests that although rent arrears rates are higher than the usual 3-5% seen within the private rental sector in normal times, the tsunami predicted at the beginning of the Covid pandemic has yet to materialise.Safeagent says 21% of agents reported between 10% and 20% of their tenants in arrears while 7% said they had none.Among tenants who were in arrears, letting agents reported that a significant majority were either one and two months’ behind (39% and 33%) while 13% said tenants had arrears of more than three months.Payment plansThe vast majority of agents (86%) said landlords were happy to offer struggling tenants payment plans, while a quarter had tried mediation.But when support plans failed, a fifth had decided to sell their property rather than risk further exposure to the downturn, and nearly 40% had moved to evict.Agents reported that most rent arrears were the result of a tenant losing their job and that the furlough scheme ending, along with the ongoing curbs on evictions, are causing significant concerns and complications. A small but significant number of those in rent arrears have refused to pay their rent, rather than giving a reason for their arrearsIsobel Thomson, Safeagent Chief Executive (above), says: “Clearly our sector is facing tough times, but where tenants are in difficulty, it is clear that agents are working to support tenants and landlords in finding solutions to repay arrears and keep people in their homes.”Read more about rent arrears.Isobel Thomson rent arrears SAFEagent October 15, 2020Nigel Lewis2 commentsPossession Friend, Possession Friend Possession Friend 15th October 2020 at 11:43 amTenants with genuine Covid-related arrears will need Govt assistance. Whilst MHCLG have colluded with the judiciary to pass the rent default burden onto private landlords by initially suspending and then massively delaying the justice[sic] system.However, evictions will eventually take place and the burden eventually fall to Local Authorities who WILL then require the funding to deal with this aftermath.The government could short-circuit this massive harm to small landlords and of course the tenants who will loose their home, by making the rental payments up, NOW ( not wait until they are at the L.A’s Emergency Accommodation ‘door’ )Log in to ReplyMick Roberts, Advance Properties Advance Properties 15th October 2020 at 5:34 pmThat’s exactly it. But will they ever listen & do joined up thinking? No. They Keep doing as they doing not working with Landlords, some tenants get temporary reprieve, majority of tenants lose out in long run.Higher rents, less supply. Govt & Councils pick up pieces & costs ’em billions.Log in to ReplyWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img read more