10,000 tenants behind with their rents

homelessskilledworker

http://www.metro.co.uk/news/900591-rising-rents-force-10-000-tenants-into-arrears

More than 10,000 tenants contacted the Consumer Credit Counselling Service in the last 12 months – a rise of 27 per cent on the previous year.

On average, tenants were £760 in arrears and regularly left with a disposable income of just £35 a month after paying all their bills.

chewmylegoff

homelessskilledworker wrote: »

http://www.metro.co.uk/news/900591-rising-rents-force-10-000-tenants-into-arrears

More than 10,000 tenants contacted the Consumer Credit Counselling Service in the last 12 months – a rise of 27 per cent on the previous year.

On average, tenants were £760 in arrears and regularly left with a disposable income of just £35 a month after paying all their bills.

that's about 0.3% of tenants.

The-Joker

When will it get to breaking point where all these landlords not getting their rent will be repossessed? If I was a landlord which I am not, I would try and keep a bit by to cover tenants not being able to afford the rent. It costs thousands and a few months through the courts to evict them, and you have to keep up with mortgage payments which will be harder as they keep on going up.

Graham_Devon

chewmylegoff wrote: »

that's about 0.3% of tenants.

Yer, and thats just the ones owning up, and looking for help with a specific advice centre.

The-Joker

I wonder what the real figures are? Mind you no different to our and most other governments around the world. Live beyond your means and kick the can down the road.

The only reason the UK and USA are not bust is because of all the currency added to the supply out of thin air. It will continue until you need a wheelbarrow full of currency to buy a loaf of bread.

Also reading in the Metro this morning they predict in about 3 years many will not be able to afford their utility bills. There is already record number of defaults on all sorts of bills, rent is no different and defaults will keep going up.

chewmylegoff

Graham_Devon wrote: »

Yer, and thats just the ones owning up, and looking for help with a specific advice centre.

true, but having looked at a better article, it appears that this includes social tenants so it's more like 0.15%.

FTBFun

The-Joker wrote: »

When will it get to breaking point where all these landlords not getting their rent will be repossessed? If I was a landlord which I am not, I would try and keep a bit by to cover tenants not being able to afford the rent. It costs thousands and a few months through the courts to evict them, and you have to keep up with mortgage payments which will be harder as they keep on going up.

When it gets to a tad more than 0.3% of tenants?

Graham_Devon

The key really isn't the 10,000, and the percentage that makes, as we all know.

It's the rise of 27% in the last year thats the important point to note.

chewmylegoff

This is perhaps more useful, although it is the evil VI LSL property services, so obviously we should at least triple their figures:

http://www.lslps.co.uk/blog/
http://www.lslps.co.uk/blog/5/45/Rents-Fall-For-Second-Month-as-Arrears-Drop---Buy-to-Let-Index-March-2012
http://www.lslps.co.uk/documents/buy_to_let_index_feb12.pdf

suggests the % of rent "late or unpaid at the end of the month" was:

April 12 - 9.9%
Mar 12 - 8.7%
Feb 12 - 9.3%
Jan 12 - 10.7%
Dec 11 - 10.7%

I couldn't be bothered to look any further back, and it doesn't tell you how late the rent was and what the average arrears per tenant in arrears are, which would be helpful to know. I presume the figures mean that cumulative arrears of all rent due are 9.9%, i.e. if total monthly rents were £100, the £9.90 that Landlords were owed at the end of April 12 includes accumulated arrears still not paid all previous months, as well as rent falling due but not paid during April 12.

chewmylegoff

Graham_Devon wrote: »

The key really isn't the 10,000, and the percentage that makes, as we all know.

It's the rise of 27% in the last year thats the important point to note.

the key is that the stats published by one charity handling few cases are not statistically significant, and a 27% increase for CCCS is meaningless and needs to be considered alongside figures for all similar service providers. The 27% may not relate to worsening economic issues at all - it could be a result of "competitors" to CCCS closing, or CCCS deciding to spend more money advertising its services, for instance.

chucky

homelessskilledworker wrote: »

More than 10,000 tenants contacted the Consumer Credit Counselling Service in the last 12 months

10,000 people? Sounds a huge amount but then again...

In 2005 12% of property was privately rented and about 18% was social rented. It's going to be higher now in 2012.

So... If we just take these 10,000 as being a combination of social and private tenants that's a massive huge 0.23% of all tenants.

But as most journalists aren't usually clear and go for the headline number instead of the real info that's a huge 0.34% of private tenants. Both percentages will be lower if we used today's numbers.

I'm surprised that homelesskilled worker didn't use the 0.23% or the 0.34% number to make the point or use it in his subject line of the thread... but then again.