A third (32 per cent) of landlords in the UK – approximately 500,000 – say they have experienced rent arrears in the last 12 months, according to research from the leading landlord association*.
The research shows that a typical landlord faces £1,649 of outstanding rent each, totalling £850m worth of rent arrears across the UK.
The findings, from the National Landlords Association (NLA), also show that one in five (22 per cent) landlords in the UK – approximately 300,000 – are worried that their tenants won’t be able to keep up rental payments over the next year.
The research supports the launch of the NLA’s latest campaign: rent, risk resolve. The campaign aims to highlight four of the biggest risks facing landlords and help them to minimise the impact on their lettings business:
- Rent arrears
- Rising interest rates
- Local landlord licensing and regulation
- The introduction of rent controls
Carolyn Uphill, Chairman, National Landlords Association, said:
“All landlords will be affected by one or more of these issues to some extent somewhere down the line and it’s vital to keep in mind the major threats to the success of your business.
“Regardless of the size of your portfolio the potential impact of these risks can be devastating on both the business and personal life. As the largest landlord association in the UK, we have a duty to support and advise on how to plan ahead effectively and manage these risks”.
The first focus of the NLA’s campaign will be the risk of rent arrears. The NLA has produced a guide to support landlords to deal with the problem.
A landlord’s guide to rent arrears enables landlords to spot potential arrears early and provides strategies to put in place to mitigate the impact. To find out more about the campaign, or to download the free guide, visit www.landlords.org.uk/rentriskresolve
*NLA Landlord Panel – Q3 2014 (1079 respondents).