Landlords owed more than £267 million in unpaid rent

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22nd February 2011

Landlords owed more than £267 million in unpaid rent

Figures recently released for December show that landlords in the UK are owed a staggering £267 million in unpaid rent. Unpaid rent increased from 9.7% in November to 11.7% according to statistics released this month. This shocking news prompted Ian Fletcher, director of policy at the British Property Federation to say: "Christmas is an expensive month for all with the pressure to ensure presents under the tree come the 25th. But Christmas should not be bankrolled by long suffering landlords by not passing on December's rent."

It is likely, however, that this increase in unpaid rent is set to continue upwards. Landlords who rent their properties to DSS tenants have seen a dramatic change in their income since the introduction of Local Housing Allowance. More and more tenants unused to dealing with their rent struggle to balance their spending and it is often their landlords who suffer with unpaid or late rent. Despite a torrent of warnings and complaints from landlords the Government have still to address this problem.

Local authorities across the UK have been deluged with complaints from landlords who have not had their rents paid. At a recent Islington City Council landlord forum meeting, council employees faced a barrage of justifiable anger from landlords who will face serious cash flow issues should tenants spend their rent elsewhere.

But this problem is not confined to the benefits sector, working people are now under serious pressure as the cuts following the recession start to bite. Young people in particular are vulnerable to redundancy and job changes and young people make up the majority of the private rented sector tenants.

Landlords need to take action to protect themselves from the effects of unpaid rent. Martin & Co has always advised landlords of the need to take up comprehensive references on prospective tenants. In addition products like rent and legal protection are available.

If you have property you let out and feel anxious about possible rent arrears and how this may affect you, call us on 020 7359 0800 for a no obligation chat.