Research shows that arrears and voids are falling
August 8, 2013
The National Landlords Association (NLA) quarterly research data shows that arrears have fallen to their lowest level for two years with only 39% of landlords having been affected by arrears in the last 12 months. This figure is down 9% on the 2010 levels.
Another statistic to arise from the research was that void periods have also fallen and are down 5% since the last quarter with only 1/3 of landlords (33%) having a vacant property. This statistic can be attributed to the fact that rental demands, especially in London, continue to increase due to the difficulty of getting onto the property ladder.
When this is broken down to look at regional levels the greatest number of voids are experienced by landlords in the North East of England (60%) while the lowest void numbers are found in the South West of England (20%).
The research results also established that seven in ten voids were unplanned and that landlords had to cover the financial impact of voids using various means, including:
- 33% using rent from other properties
- 10% using their other income or salary
- 09% using funds from their savings
It is positive to see reductions in arrears and voids as this demonstrates that longer term tenancies are becoming more commonplace as landlords look to recieve a stable income.