The number of tenants who are seriously behind on rent has risen by almost 14% between Q2 and Q3, the highest level in almost two years, according to Your Move & Reeds Rains.
The latest Rental Arrears Tracker has revealed that more than 84,000 tenants are more than two months behind on rental payments as of the end of the third quarter of 2015, meaning an additional 10,000 more people are facing financial difficulties compared to the second quarter of 2015.
The agencies claim that on a historical basis, the latest deterioration in serious rental arrears remain relatively mild, considerably lower than the 116,600 recorded in the third quarter of 2012.
But they say the growth in serious rental arrears could be blamed on an increase in the UK Private Rented Sector as a whole.
However, in the third quarter of 2015, there was a total of 26,712 court cases requiring the eviction of a tenant, a decrease of 4.3% from the previous quarter.
Adrian Gill, director of Your Move and Reeds Rains commented on the findings: “Most households are beginning to earn more, the cost of living is stable and the chance of falling into unemployment is diminishing.”
“But beneath this rising tide there are inevitably some households and individuals who are not yet feeling any new economic buoyancy. As others bid rents higher there will be a minority who are still struggling to keep up. Landlords and tenants have a mutual responsibility to be aware of this small but significant risk,” he added.