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Sharp rise in arrears as rents soar, say letting agents

There has been a sharp rise in rent arrears - they made up 8.7 per cent of all rent payable in June, according to data collected by Your Move and Reeds Rains. 

Although a spokesman for the agencies says this figure is still “far lower” than was seen during the downturn, it is notably higher than the 7.6 per cent as recently as May this year, and the 7.8 per cent recorded a year ago. 

The agents also say that annual rent rises hit 5.6 per cent across England and Wales in June, the fastest increase since the firms started recording the market in 2009.

The agencies say rents are now growing faster than house prices on an annual basis, for the first time since July 2013.

Rents across England and Wales reached an average of £789 in June, standing 1.4 per cent higher than the £778 recorded in May. 

The agencies’ spokesman, Adrian Gill, says there may be more rent rises to come. 

“In the wake of the Summer Budget’s reduced assistance for landlords, we might see many aim to pass additional costs onto their tenants. If so, rents would receive yet another acceleration” he says. 

  • Kristjan Byfield

    7.6-8.7% rent arrears...Ouch! I dont think our figure has ever made it over 1% in 11 years and we are in Lodnon with much higher rents than the UK average. Looks like they need to tighten up their referencing criteria.

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