LATEST: Rent arrears recede amid improving economic confidence

Just 6% of tenants are worried about the pandemic affecting their ability to pay rent, according to a new survey.

The Goodlord and Vouch State of the Lettings Industry report polled 1,750 tenants as well as 550 letting agents, who are also feeling confident about renters’ ability to keep up with payments; the number recording an increase in arrears during the past year has halved from 64% to 32%, with 14% of agents reporting a fall in arrears. 

Despite legislation, lockdowns and changing consumer behaviours keeping the market in a near-constant state of flux, both agent and tenant optimism is high.

But the report also reveals that a lack of stock is a major concern for agents, with almost half of those surveyed saying at least 5% of their landlords have left the sector during the last 12 months, while 64% predict the landlord exodus will only get worse. 

The annual study, which takes the temperature of the lettings market, is published in full next week and will also reveal industry opinion on upcoming regulatory changes, the impact technology is having on workforce numbers, and the proportion of agents who have unlocked new revenue streams. 

Tom Mundy (pictured), COO at Goodlord, says the insights indicate that most renters are feeling financially secure while agents aren’t encountering the escalating levels of arrears seen a year ago.

He adds: “This is borne out by the latest statistics from our monthly rental indices, with rents heading up and voids dropping during 2021. Key challenges do remain, with lack of stock clearly a huge area of concern for most agents.”

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