Landlords are starting to feel the strain on the rental market as more and more tenants are struggling to make their rental payments on time due to the difficult economic climate – which has resulted in job losses and financial problems for families throughout the UK.
A latest report from the Association of Letting Agents (ARLA) has revealed that over 40% of its members have reported an increase in the number of their tenants who are struggling to meet their monthly rental payment on time in the last 6 months to Auguest 2014.

“It seems more and more tenants are finding it impossible to make ends meet. It is likely that the same is happening for landlords, who may find their mortgage rate is rising. At worst, this double whammy may result in landlords defaulting on mortgages and tenants being forced to move out of a property.” Ian Potter, Operations Manager at ARLA.
 

According to the survey, this has lead to an increase in landlords reporting that their tenants are approaching them in an attempt to “re-negoatiate” the amount of rent they are being asked to pay. 51 per cent of ARLA members have reported this happening over the last 3 months, an increase on the 45 per cent from the previous quartlerly report.
In other news on the rental market, the latest buy-to-let index from letting agent network LSL Property Services has revealed that the average monthly rent has risen just 2.7 per cent in the last year – this is below the official CPI rate of inflation of 3.5 per cent, and is a significant drop in the annual rent increase of 4.2 per cent recorded at the same time last year.