Tenant arrears could mean landlord mortgage defaults

The "worryingly high" level of tenants' rental arrears could see a number of residential landlords default on their mortgage, one industry body has warned.

According to the Association of Residential Letting Agents (ARLA), despite a monthly decrease, more than half of its members have reported an increase in the number of tenants that are "struggling" to meet their rental demands.

Figures recently published in an ARLA report revealed that 55 per cent of respondents said that this was the case.

Ian Potter, the organisation's operations manager, said that while unemployment remains high and demand for rented accommodation increases, the likelihood of tenants falling into arrears will remain a problem.

He said: "The housing market looks increasingly buoyant with demand for rental properties having risen strongly since October."

"The problem of rental arrears will therefore persist and potentially grow in seriousness as tenants get caught in a web of debt."

Mr Potter explained that rental arrears could lead to repossessions if landlords were forced to default on their mortgage payments.

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