The Good News
It emerged last week that the number of new tenants registering for rental accommodation through the Countrywide agency chain increased by 20% in May, compared with April. The May numbers were also 28% up on May 2010.
This is great news for landlords. The falling property values are currently being more than compensated for by low interest rates (which now look set to continue for another year or so) and a growing demand for rental property, which is leading to higher rents.
The Bad News
Clearly, the flip side of this is that some tenants are getting themselves into financial difficulties and are unable to keep up with rental payments. The number of court orders to evict tenants is up 9% in the last year, and look set to rise further. The number of tenants in severe rental arrears is up by 13%., around 74,500 people.
That said, this is only 2.1% of rented properties in the private sector, so it’s not too bad, at least not at the moment.
