Landlords With Rent Protection Insurance Are Reaping Rewards

Tuesday, August 5, 2014

Landlords With Rent Protection Insurance Are Reaping Rewards

Landlords With Rent Protection Insurance Are Reaping Rewards

Rent Protection Means Severe Rent Arrears Fall Again

The number of private rented sector tenants in the UK who have fallen into severe rent arrears has dropped by 35% in last 12 months, equivalent to 35,000 tenants.

The improvement has been attributed to the increasing use of rent protection insurance by landlords who are keen to protect the interests of their tenants as well as ensuring continued rental income.

According to the latest tenant arrears tracker report from LSL property services 98.5% of private sector tenants are now able to avoid falling into severe rental arrears thanks to the development and improvement of rent protection insurance products.

Over 67,000 PRS tenants are still over 2 months behind on their rents but this is a huge reduction in numbers compared to 102,000 tenants facing severe rent arrears in the 2nd quarter of 2013. As of May 2014, overall tenant rent arrears now stand at around 7%, down from 8.2% recorded in May 2013.

Renting in the UK’s private rented sector (PRS) has become easier for tenants with professional portfolio landlords and letting agents, as they are more aware of the wealth of specialist products and services that are being developed to help them operate their property rental businesses. Tenants have faced adversity from a number of quarters over recent years, with employment uncertainty, spiralling energy costs and rising day to day living expenses mounting up to cause a great deal of pressure on finances.

Rent Protection insurance can help tenants avoid falling into rental arrears, should they experience a change in circumstance, and the only proviso for landlords is that they must comprehensively tenant reference applicants before accepting them as tenants, a process that should be carried out by all landlords and letting agents anyway.

However, the LSL property services report also shows that despite a drop in the number of tenants falling into severe arrears, the number of PRS tenants facing eviction has continued to rise.

The first quarter of 2014, saw 33,000 tenants facing eviction, up 5.9% from the final quarter of 2013 and annual tenant eviction levels are 10% higher than in the first 3 months of last year.

This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.