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Financial stability for tenants creates opportunities for landlords

The increased financial stability of the UK is benefitting landlords as tenants enjoy good financial positions.

UK Rental Agreement

The increased financial stability of the UK is benefitting landlords as tenants enjoy good financial positions.

Figures from the Buy-to-let Index generated by LSL Property Services shows that the financial situation of tenants has greatly improved over the past twelve months, leaving landlords in a better position.


The Index highlighted that late payment of rent has fallen from £284 million in March 2013 to £269 million in March 2014, indicating that landlords are experiencing the benefits of the economic recovery.


The proportion of rental arrears has fallen accordingly, with 7.8% of all rent accounting for arrears this year, a significant improvement over last year’s 8.5%.


The improved condition of tenant finances has been seen by LSL Property Services as a move towards a healthier rental market for landlords.


Meanwhile, the Index also recorded that rents have increased by 0.9% since March 2013, with rents increasing in half of the regions across England and Wales.


As void periods have fallen for landlords and property prices have increased, annual returns in buy-to-let property have also risen to 12% in the year to February, the highest figure since June 2010.