Drop in tenant arrears but court orders for eviction rise

There has been a drop in serious tenant arrears, a receiver of rents has reported.

However, court orders for evictions have risen.

Compared with a year ago, 35,000 fewer tenants are facing rental arrears of more than two months, according to Templeton LPA.

Reporting on the second quarter of this year, the firm says that those more than two months behind on their rent now number 67,000.  This compares with 102,000 last year.

As a proportion, it means that just 1.5% of private tenants are in serious arrears.

Despite fewer tenants falling into the most severe arrears, the number actually facing eviction has continued to rise.

As of the first quarter of this year – when the latest figures are available – 33,000 tenants faced potential eviction via court order, up 5.9% from Q4 2013.

Meanwhile, landlords have continued to benefit from both the improving financial position of tenants and a beneficial mortgage market.

Landlords’ own mortgage arrears have fallen for the sixth successive quarter, with just 14,700 buy-to-let mortgages in arrears of more than three months in Q1 2014, down 10.9% from the previous quarter.

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