The number of landlords facing rental arrears has almost doubled since last year, a new study has found.
The latest figures from research agency BDRC’s quarterly survey of 500 private landlords found the number increased from 18% in Q1 2008 to 30% just 15 months later.
While 38% covered the cost of non-payment from their tenants’ deposit, 32% have taken direct action and evicted their tenants.
However, BDRC said the survey found some optimism among landlords that capital gains, rental yield and overall letting prospects would improve.
The biggest surge of optimism was in letting prospects, with 17% of landlords reporting they thought these were “very good” for the next three months – compared to 10% in Q1.
BDRC said 19% of private landlords thought the prospect for rental yield in the next there months were “very good”, an increase on Q1 this year but unchanged from the first three-quarters of 2008.
And 13% said the prospects for the private rental sector in the next three months were “very good” – increasing slightly from 10% last quarter, and the second-best result since measurement of this metric began in Q4 2007.
BDRC director Mark Long said: “It is clearly a tough time for private landlords, with many more experiencing arrears and the longest void periods than at any time since we started tracking this market in 2006.
“However, there is a feeling among some that prospects are good for the next three months as demand for rental property is fuelled by the restrictions on residential mortgage lending, making it hard for many people to buy properties.”
