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Rent Arrears Fall

Written By On 15/11/2013

LSL Property Services, the leading provider of residentual property agencies across Britain, reported on rent arrears in the private sector. Even with rising rents, the figures revealed that they are the lowest they have been in the last five years.

Their Buy-to-Let Index recorded unpaid rent amounts of two hundred and forty five million pounds for last month by tenants, down by nearly one and a half per cent on the previous month, and by ten per cent on the same month in the previous year. In fact, it is the lowest month since records began in November 2008.

The news may seem somewhat surprising as rents have risen by nearly two per cent for the same comparable period.

Rents in London followed by the south east are the areas that have increased the most in England. whilst in stark contrast to the north east they have depreciated slightly. An average monthly London rent is now one thousand, one hundred and fifty six pounds. However an average monthly rent in the north east is under half of that at five hundred and twenty two pounds.

This translates into good news for landlords, particularly in London and the south east who have invested in buy to lets, especially compared to the returns they might be receiving if their money was sitting in a deposit account.

This report comes on the back of yesterday's news from the Council of Mortgage Lenders. According to the CML, repossessions were down by more than twelve per cent in the last quarter to just over seven thousand.

All this new data, along with more competitive products being offered daily on the mortgage and loan market, perhaps this just may be a time for more cautious optimism.