Rising rental yields 'accompanied by increasing arrears'

News Category: Industry News

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Landlords have been given a mixed prognosis on the condition of the lettings market after being informed that increasing levels of rental yields have been accompanied by a rise in unpaid rent.

New research from letting agency LSL Property Services has revealed that average rents have risen in the past month to £649, while yields have achieved a rate of 5.1 per cent, their highest point in five years.

However, the research discovered that the total amount of unpaid rent among UK tenants has also increased to £254 million, due to an increase in those occupying more expensive properties falling into arrears.

David Brown, commercial director of LSL, said that landlords can capitalise on current conditions by investing in expansion of their property portfolio, but cautioned them to also act quickly to reduce of the risk posed their income by unpaid rents.

Earlier this month, research from Arla also suggested that landlords are facing an increase in tenants struggling or unwilling to pay rent.

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