With the New Year comes good news for landlords and tenants; according to Templeton LPA’s Arrears Tracker the number of tenants in arrears in the UK has fallen from just over 100,000 to 86,000, a low since the end of 2011. This will come as welcome relief for landlords who have unreliable tenants and it could be a sign that financial worries are starting to ease.
Improved Employment Boosts Incomes
A drop in unemployment has certainly helped to give tenants a lifeline in difficult times. Though economic performance indicators for the UK are still mixed and economic growth is stalling, an increase in employment is the first step towards recovery. It could be that many tenants were temporarily in arrears due to a redundancy or lay-off and have recently found new employment.
However, alongside good figures about arrears, evictions have also been on the rise. It’s certainly the case that some former non-payers are now on the way to eviction. There are plenty of tenants who have been in arrears for some time and for a lot of landlords the decision stops becoming about how to reclaim arrears and starts to become about how to begin eviction procedures.
Statistics Don’t Tell All
It’s important to remember that whatever the statistics say, the running of your property is still down to you. Rent Guarantee Insurance is still the only way to ensure you will be paid during difficult periods for your tenants. The number tough tenants out there may be on the decline but it’s your tenants that matter: don’t take too much comfort from the figures if your tenants are still troublesome.
Though there are certainly good signs out there, there’s never any guarantee that your tenants will pay up on time. A better economic climate will minimise a few of the risks out there for landlords, but it can’t ever make letting a risk-free environment.