Private renters' arrears 'at worst level since 2012'
Private rental sector tenants' arrears have reached the worst levels seen across England and Wales in two-and-a-half years, following a period of "blistering" rent rises, according to a buy-to-let index.
Tenant arrears made up 9.9% of rents payable in August, marking the highest figure seen since December 2012, the index from estate agents Your Move and Reeds Rains found.
Average rents fell month-on-month in August for the first time since March. The typical monthly rent was £803 in August - a £1 fall compared with July.
Despite the slight fall, average rents in August were still 5.5% higher than a year ago. And while rents edged down overall in August, in three regions they reached new record highs. In the West Midlands, rents were at a new record of £586 per month on average, while in the East Midlands they reached a new peak of £596 typically.
The East of England also saw rents rise to a new high, taking them to £843 per month on average. The East of England has also overtaken London to see the fastest annual growth in rents - at 11.5%, compared with annual growth of 10.2% in the capital.
But tenants in London still pay the most in cash terms, with the average rent per month at £1,278 in August.
Adrian Gill, director of Your Move and Reeds Rains, said the overall pause in rent rises across England and Wales follows a series of "blistering rent rises" that have already taken place this year.
He said: "Rents are rising rapidly on an annual basis, underpinned by an improving economic picture for many potential tenants - and the peak lettings season is only just about to start this autumn."
Looking at the worsening arrears levels, Mr Gill said that many tenants who are seeing their incomes rise as the economy improves are helping to bid rents up at a time of "rapidly growing demand" in the sector.
This in turn is making life tougher for those tenants who are not seeing the same improvement in their financial position, he said.
The latest rental arrears figure is still way below a record set in February 2010, when 14.6% of rent due was in arrears.
The index is based on rents achieved on around 20,000 properties across England and Wales.
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