UK residential landlords see rent arrears rising

Almost three-quarters of Britain's residential landlords expect rental arrears to rise in 2009 as recession threatens ability of tenants to pay rent, research from the National Landlords Association (NLA) showed on Monday.

The research showed 71 per cent of landlords expect rent arrears to increase during 2009 compared with just 1 percent who said they expected overall arrears to fall.

The research also showed that 37 per cent of landlords were already having problems securing rents from tenants, and were themselves at risk of falling behind on mortgage payments which could trigger a wave of repossessions.

"It is a worrying situation to be in and landlords need to do all they can to ensure they are regularly receiving rent. Regular communication between both parties is essential to head off major problems," David Salusbury, chairman of the NLA, said.

"The money received through rent is vital and with 71 per cent of landlords predicting that rent arrears will rise in the next 12 months, it is more important than ever that landlords are able to make an informed decision about the financial worthiness of the tenants they are taking on," he said.