The rate of growth in the number of tenants in severe arrears is slowing, but nevertheless rose by 1.6 per cent in the third quarter of this year. There are now 99,000 tenants in arrears of two-months plus – the highest since 2008 and 15 per cent more than last year.
The figures are from Templeton LPA, a specialist practice of LPA Receivers and part of the LSL property group.
Tenants in severe arrears represent 2.5 per cent of tenancies in England and Wales.
Although cases of severe arrears climbed steadily last quarter, overall tenant arrears fell slightly in August, with nine per cent 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 this year, 25,422 tenants faced eviction notices, a quarterly fall of six per cent compared to the previous quarter, reversing the previous six per cent quarterly increase. However, evictions remain eight per cent higher on an annual basis.
The number of buy-to-let mortgages over three months in arrears fell by seven per cent to 22,000 by the end of the second quarter, compared with a previous quarterly fall of four per cent. On an annual basis, cases of buy-to-let mortgages more than three months in arrears fell by 21 per cent.