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Rental arrears and voids at lowest level for six years

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  • 16/02/2023
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Rental arrears and voids at lowest level for six years
Landlords with tenants in rental arrears and vacant rental properties have fallen to the lowest level since 2017.

According to Paragon research, which surveyed 750 landlords, around a third (32 per cent) of landlords have had at least one tenant in rental arrears in the past year.

This is a slight drop on the 34 per cent in the previous quarter.

The proportion of landlords reporting void periods in the last three months also came to a new low of 24 per cent, which is a fall of four per cent compared to the prior quarter.

The void duration also fell from 82 days to 70 days, and for landlords with 11 or more lets void durations come to 44 days.

 

Demand for rented homes at record levels

Richard Rowntree (pictured), managing director for mortgages at Paragon Bank, said: “It’s great to see that that the proportion of landlords experiencing tenants who are behind on their rent has fallen to the lowest levels since the metric was first tracked in 2017.

“We do know, however, that the cost of living crisis will not impact tenants in the same way, and it is likely that paying rent will be a real challenge for some. From speaking to landlords, we also know that many have good relationships with their tenants and are often open to working with them to overcome any financial issues.”

He added: “It’s extremely encouraging to hear that voids reported by landlords are at their lowest level since 2017.

“This is unsurprising given the demand for privately rented homes, also at record levels. This adds further weight to the argument for investment in affordable housing across all tenures, something that buy-to-let landlords should be recognised for making an essential contribution towards.”

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