Paying off their buy-to-let mortgage arrears has become easier for landlords across Britain, new figures show.
After eight months of consecutive improvements, the number of buy-to-let loans in arrears over three months has reached its healthiest level since the first quarter of 2008. The number fell by 7.4 per cent in the third quarter of 2014 as compared to the second and was down by 28.3 per cent on an annual basis, according to the latest Tenant Arrears Tracker by estate agency chains Your Move and Reeds Rains.
Given their better financial situation landlords are once again considering expanding their portfolios, which means there will be more homes to let, Adrian Gill, director of Your Move and Reeds Rains, says.
The healthier finances of landlords are directly linked with the improved financial capability of tenants. “Now, as tenants mend their income streams, both players in the rental market are supporting one another’s finances,” Gill comments.
Despite of an increase in the number of tenants in severe rent arrears towards the end of 2014, the long-term outlook remains positive, the estate agents say.
In the fourth quarter of 2014, with 68,100 people late with their rent by more than two months, the number of tenants in severe arrears grew by 7.2 per cent on an annual and by 2.6 per cent on a quarterly basis. Compared to the record peak from the third quarter of 2012, however, the number was 42 per cent lower.
