Rent Arrears Surge following Christmas Spend
Christmas spending saw a surge of rent arrears in December as people struggled to accommodate their budget for presents and bills, new figures show.
The Christmas period saw 11.7 percent of all UK rent go unpaid or late, a rise from 9.7 percent from the previous month, The British Property Federation (BPF) revealed.
This amounted to £276 million worth of unpaid rent across the UK in December, the highest total since December 2009.
“The Christmas break has taken its toll on tenant finances,” said David Newnes, LSL property services, owners of Your Move and Reeds Rains.
“Arrears have been rising since October as public sector spending cuts start to bite in many areas of the country.”
The figures show however that rent prices are easing for the first time since this time last year, according to the Buy-to-Let Index from LSL Property Services plc.
The average UK rent dropped by 1.2 percent to £684 per month in December, the lowest average since July 2010.
Despite this though, rents were still 3.8 percent higher than they were a year ago.
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