Rental Arrears at Lowest Level for 10-Years

Buy-to-let property landlords had an average of 1.3 tenants who were in rental arrears in Q2 2021 according to research undertaken by BVA BDRC on behalf of Paragon Bank.

This is the lowest level since Q1 2011, with the number of tenants in arrears standing at 2.1 in Q2 2020 at the start of the COVID pandemic as household incomes were impacted, with the figure consistently declining since then.

The average value of outstanding rent is at its lowest level for four years at £1,781 in Q2, down from £2,376 in Q1 2021, which is great news for landlords.

The survey conducted by BVA BDRC of 750 landlords found that 36% had received a request to change the rent in some form, with 18% asking for a rent holiday and 14% asking for the rent to be discounted. This flexible approach adopted by landlords has helped to keep the rental arrears to a minimum during the COVID pandemic.

Requests for a change in rent have steadily declined since the start of the pandemic, falling 7% year-on-year, which is a great indication that the UK economy is bouncing back well.

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Manchester Rents Forecast to Increase by 16.5%

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Rent in Manchester is forecast to increase by 16.5% over a 5-year period and is one of the most popular destinations for property investment in the UK for both overseas and domestic buyers.

Ancoats Gardens in Manchester due for completion in Q2 2022 is one of our most popular developments, which is being built by a developer with over 20-years’ experience in the Manchester market. The developer’s in-house rental management team are inundated with enquiries from prospective tenants for the high-end city centre apartments they have on offer and have achieved 100% occupancy, a great advertisement for the demand for good quality rental properties in Manchester.

Ancoats Gardens offers luxury properties from just £249,950 with 7% returns est. and 28% capital appreciation forecast over the next 5-years. Click here to find out more.