Britannia blames defaulting landlords for arrears
News Category: Industry News
Published: 14-Aug-2008
This article was brought to you by Rentman the premium property management system
Landlords defaulting on new build city centre flats have been blamed as a key factor for the rise in arrears experienced by Britannia Building Society.
The company, which is the second largest building society in the UK, recently announced that in the first six months of the year it took an impairment charge of £40.4 million to cover bad debt and arrears.
This contributed to the company recording a fall in interim profits from £81.7 million to £50.5 million, the Financial Times reports.
According to the lender, one of the principal causes of the rise in arrears is that landlords had been struggling to pay rents taken out on modish apartments in city centres at the height of the property boom.
Flats have been one of the property types worst hit by the housing downturn, with the oversupply of the properties resulting in a shortfall in demand in both the rental and home buying sector.
Find out more about letting agent software
