Welfare reform sees rent collection rates drop
- 28 Nov
Since the introduction of the bedroom tax rent collections have dropped, research has found.
Housemark have used data from over 190 landlords who collective manage 1.5 million properties to see the impact of welfare changes on income, arrears and rent collection costs. The report found that the proportion of rent collected fell from 99.5% in April to June last year to 98.9% in April to September.
It is said that the figures show "a marked increase in arrears among poorer performing landlords" reports Inside Housing.
Rent arrears was at the top of the ‘lower quartile' mark and the worst performing 25% of landlords increases from 3.8% to 4% in the first six months of 2012/14. Arrears for the poorest performing landlords managing more than 10,000 properties increased from 4.21% to 5.04% in September this year.
The lowest performing landlords had their rent collection drop by 6% and northern landlords rent collection for the lowest quartile was just over 95% compared to 97/98% for the rest of the UK/
The report shows that £19m has been added to the cost of managing rent arrears and collection.
"The reason for increasing costs appears to be due to extra staff and associated overheads rather than wage inflation," the report said.
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