Rentals Booming But Tenant Eviction Up

And the findings do not simply reflect difficulties getting onto the housing ladder: 92% of respondents said they preferred the relative flexibility of renting.

Whilst this is good news for landlords, concerns have also been raised about the impact of the recession. The number of tenant evictions has risen during the last year, as has the number of tenants in serious rent arrears.

45% of respondents to the survey aged 16-50 years old pointed to the benefits of due to flexibility. A common response was that moving to different areas and types of accommodation was easier as a tenant than as a homeowner; 23% said they preferred to own their own home.

Unfurnished properties take precedence over furnished, with the theory being that tenants prefer to put their own distinctive stamp on their home. Other research reveals that the average age for a first time homebuyer has been progressively pushed back, standing at 38 years in 2011.

The number of private renters has risen from 9% in 1999 to 14% nationally and the latest research from the English Housing Survey states that homeownership has fallen to its latest level in 20 years.

Against this background, the effects of the recession are being felt across the rental sector. The number of court orders issued for tenant evictions during last 12 months rose by 9%.
By July, some 13% of UK tenants were in severe arrears - with around 75,000 households located in England and Wales.

That figure had risen by 13% on the previous year. The most common reason to evict tenants is still rent arrears.

Already by January 2011, it was the root cause of over 80% of tenant eviction cases. Rising rents have been blamed, and there are concerned that the UK has not yet felt the full impact of austerity measures.

Lee Daniels, MD of Helpland Ltd., a landlord support agency, said:

“While the outlook for landlords initially looks very favourable, there are increasing concerns about the numbers who need to evict tenants due to non-payment of rent. There has been a significant increase in the number of tenant eviction orders that the courts granted last year.

"Landlords need to be fully aware that in cases of rent arrears, they simply must not take the law into their own hands.

"It can land them in serious trouble, and in the long run, will damage their finances if they must pay thousands of pounds in court fines. There are always legal steps they can take, and in doing so they will protect themselves and their investment."