According to figures* released recently by the National Landlords Association (NLA) approximately one-third (32 per cent) of UK landlords – around 500,000 – say they have experienced some rent arrears in the last 12 months.
The NLA research shows that a typical landlord faces £1,649 of outstanding rent each, which if accurate totals around £850m worth of rent arrears across the UK.
These findings show that, far from the public perception that buy-to-let is a licence to print money, and that private landlords are becoming wealthy at the expense of their tenants, many of them are worried that their tenants won’t be able to keep rental payments up-to-date over the next year.
The research was carried out with the aim of supporting the launch of the NLA’s campaign: “Rent, Risk Resolve”. The campaign aims to highlight the four biggest risks that today’s buy-to-let landlords face and to help them to minimise the impact on their lettings business:
– Rent arrears
– Rising interest rates
– Local landlord licensing and regulation
– The introduction of rent controls
Carolyn Uphill, Chairman, National Landlords Association, said:
“All landlords will be affected by one or more of these issues to some extent somewhere down the line and it’s vital to keep in mind the major threats to the success of your business.
“Regardless of the size of your portfolio the potential impact of these risks can be devastating on both the business and personal life. As the largest landlord association in the UK, we have a duty to support and advise on how to plan ahead effectively and manage these risks”.
The first focus of the NLA’s campaign will be the risk of rent arrears. The NLA has produced a guide to support landlords to deal with the problem.
A landlord’s guide to rent arrears enables landlords to spot potential arrears early and provides strategies to put in place to mitigate the impact. To find out more about the campaign, or to download the free guide, visit www.landlords.org.uk/rentriskresolve
*NLA Landlord Panel – Q3 2014 (1079 respondents).
One in three landlords experienced rent arrears in 2014, perhaps the biggest risk landlords face. http://t.co/cDu6bxBsSU
— LandlordZONE (@LandlordZONE) December 23, 2014