ARLA says the number of tenants struggling to pay rent has fallen to a record low having fallen from 65 per cent to 27 per cent in just under five years.
“Any overall fall in rental arrears is good news but 27 per cent is still high considering the economic climate in the UK remains challenging” says Ian Potter, outgoing managing director of ARLA who leaves his post in June.
ARLA’s latest quarterly report also says 46 per cent of letting agents say demand for rental homes still outstrips supply with more tenants than properties available at the end of 2013.
This is a slight decrease on the 52 per cent recorded in the third quarter of 2013 but is still far from historic lows of 10 per cent seen in 2009 and, says ARLA, signifies that there remains a significant under-supply of private rented sector accommodation.
“Competition for the best properties remains fierce but this shouldn’t tempt tenants to offer beyond their means. As well as rent itself, the deposit, utility bills and contents insurance should always be factored in to any budget to avoid any shortfall” advises Potter.