A spike in the number of households falling into rental arrears could be on the cards due to the Renters’ Rights Bill, business management consultant FCC Paragon has predicted.
Figures from the English Housing Survey found that 5.3% of all privately rented households across England were either currently in arrears or had previously been so, an increase of 3.2% year-on-year.
With the scrapping of Section 21 evictions in the Bill it’s likely to be harder for landlords to evict bad tenants, as they’ll be forced to go through the slow-moving court system.
Bekki Leaves, managing director of FCC Paragon, said: “Whilst the Renters’ Rights Bill may have been designed with the best intentions, the rental sector is facing some very serious consequences and we anticipate a continued spike in rental arrears to be one of them.
“The move to periodic tenancies, the abolition of Section 21 and preventing tenants from offering more cash upfront to offset income concerns will all contribute to an increased level of vulnerability on the side of landlords.”
Arrears have climbed as high as 9.3% in Yorkshire and the Humber.
London is home to the most privately rented properties falling into arrears in terms of volume, with the region accounting for a quarter of all homes facing arrears across the PRS.
