Thursday, 18 October 2012

Rise in rent arrears leads to increase in landlord possessions

Landlord possession claims in England and Wales are rising as rent arrears increase to their highest level in four years, it is claimed.

In the second quarter of 2012, there were 25,422 landlord possession claims that led to an order being made on the seasonally adjusted basis. This is slightly higher than in the first quarter of 2012 and continues the upward trend since 2010, according to the government’s quarterly Court statistics.
Landlord possession claims leading to orders made in England and Wales are up by 8% year on year to the end of the second quarter of 2012.
Areas with particularly big rises include Gloucestershire up by 29%, West Sussex up by 20%, and Hampshire up by 29%. Some towns have also seen big rises such as Bournemouth up 30% and Croydon up by 28%.

The rate of growth in the number of tenants in severe arrears is slowing, but nevertheless rose by 1.6% in the third quarter of this year. There are now 99,000 tenants in arrears of two months or more, the highest since 2008 and 15% more than last year, according to figures from Templeton LPA, a specialist practice of LPA Receivers and part of LSL.
Tenants in severe arrears represent 2.5% of tenancies in England and Wales. Although severe arrears cases climbed steadily last quarter, overall tenant arrears fell slightly in August, with 9% of all rent late or unpaid, the first improvement in this measure in three months.

Despite the steady growth in severe tenant arrears so far this year, there was a slight reduction in the number of tenants who faced eviction through court order on a quarterly basis.
In the second quarter of 2012, 25,422 tenants faced eviction notices, a quarterly fall of 6% compared to the previous quarter, reversing the previous 6% quarterly increase. However, evictions remain 8% higher on an annual basis.