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Rental payment delays ‘are creeping up month-on-month’

There has been a notable increase in the number of rental properties now making late rent payments, according to a survey of letting agencies covering 16,000 UK properties. 

The research, conducted by property technology company Goodlord, found that 6.59% of private rented households are now making late payments. 

Prior to the lockdown, agents recorded late payment behaviour for 4% of properties on average.

Between 21 March and 21 April, an increase was reported in late payment behaviour; almost 2% more properties owed rent after seven days, an increase from 4% to 5.85%.

Between 21 April and 21 May, the number of late rent payments increased from 5.85% to 6.59%, a proportional increase of 13% month-on-month.

Tom Mundy, COO of Goodlord, commented: “Instances of payment delays are creeping up month-on-month as the economy and livelihoods are affected by the pandemic.”

Rental payment delays ‘are creeping up month-on-month’

The number of tenants who have agreed to some form of rent reduction or payment plan has increased by 22% since the first sample was taken, up from 2.82% to 3.43% of properties.

Mundy added: “While the numbers aren’t insignificant, we’re also seeing a lot of positive activity on the agent and landlord side to create payment plans and offer flexibility to help tenants who are struggling - on the whole, there’s a huge amount of empathy on all sides and a desire to resolve issues constructively. 

“A key area that does still need addressing however is confusion amongst tenants on paying rent whilst evictions are paused - agents are reporting that many tenants have misinterpreted these rules and some have been requesting payment breaks despite no change to their circumstances. This ongoing confusion is damaging for everyone involved. 

“We predict a lot more activity in the market over the coming months, as tenants move in line with changed circumstances and those on course for long-term home working taking the chance to move to a new area. And we predict rental defaults to continue at above-average levels for every month restrictions are in place. 

“However, the wider uptick in market activity for the rental sector is cause for optimism.”

Poll: Have you noticed an increase in late payment behaviour?

PLACE YOUR VOTE BELOW

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    I'm a little confused!! 6 .59 % late payments does that also include non payment altogether. If not Interesting if you could actually get a set of figures with non payment, late payment and part payment probably would be affecting around 20% of the private rental sector at the moment.

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    • C H
    • 22 June 2020 08:46 AM

    My tenant said she couldn't pay her rent the day after the announcement, I applied for a BTL break and allowed her to do so, she is self employed so of course during lock down I couldn't see how she could earn. I expect this month she will again say she can't pay since the government extended the scheme. Where do I stand, I am willing to agree a reduction for the next 3 months but imagine by now she has claimed some help.
    I am in the same position and relying on my savings as I don't qualify for benefits and was made redundant so not self employed. Whilst I've made provision for lack of rent I hadn't made provision for being out of work and not have any rent coming in for months so if she cannot pay for any length of time the consideration is to sell to ensure my own home isn't at risk.
    Can I serve her notice if I need to sell or must I wait until the end of the none eviction period the gov set
    ?

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    While you cannot evict her at present nothing stopping you doing a money claim online for the money she does owe you, £60 last time I done one and dead easy to do, if she doesn't pay up it will earn her a CCJ , might just wake her up to reality .

     
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    And the CCJ will last for 6 months.
    Unlikely any letting agent or sensible landlord will entertain her with that over her head.
    Tell her that is your plan, and watch her pay you something pretty quick.

    I did it once, and it was the best £60 i have ever spent.

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    Sorry 6 YEARS!!!!!!! Even better.......

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    My son rents his house because he had to move jobs. The tenant stopped paying immediate on government announcement. Four months rent is now due and he does not respond to calls from the letting agent. He wants to move out in any case, but he will do so owing four months rent. The tenant has just placed his financial problems on the head of my son who is reliant on the rent to pay his own bills. Is it worth pursing this through the Court and if so, what is the next step, assuming that he does vacate the property.

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