New Year for most people is a time of doom and gloom. Overspending at
Christmas often leads to hefty bills come January, all at a time when the
weather is cold and the heating is on more than usual. But thankfully for
landlords in the private sector, it isn’t all doom and gloom as figures
indicate that overall rent arrears have actually fallen for the first time
in a year.
Times are tough for tenants
The cost of living has been increasing steadily since the start of the
recession. Food, fuel, rent and pretty much everything is now much more
expensive than it was twelve months ago. Naturally this has led to a rise in
the number of tenants owing more than two months rent as more and more
people struggle to find the cash to pay their bills. Christmas and New Year
is traditionally the worst time for rent arrears since many tenants
prioritise their Christmas spending over paying the rent, probably in the
hope that their landlord will take pity on them because it’s Christmas.
More jobs available
Experts believe that the dramatic fall in unemployment figures at the back
end of last year is largely responsible for the fall in rent arrears. A more
buoyant jobs market means that fewer tenants are out of work and therefore
unable to pay the rent. However, despite the decrease in the number of
tenants falling into rent arrears, the number of landlords struggling to pay
their buy to let mortgages is increasing, which is not good news for the
private rental sector.
