Late payments and mortgage defaults on the rise, survey suggests
Landlords increasingly struggle with tenants who pay rent late or default, a mortgage lender is claiming.
Research from Molo suggests landlords are now typically owed an average of £725 with 2.9 late payments likely per year.
Molo Vice President of strategy Mark Michaelides says: “Nearly two-thirds of landlords have seen an increase in late rent payments due to the cost of living crisis, but this doesn’t always have to lead to extreme measures against tenants.
“As a tenant, it’s important not to ignore the problem. I’d advise tenants to communicate promptly, explaining reasons for delays and requesting additional time. Open dialogue can lead to collaborative solutions.
“Our recent research found that 54 per cent of landlords have implemented payment plans for tenants facing late rent. Additionally, tenants can explore government schemes and seek guidance from organisations like Shelter or Citizens Advice for free support and advice.”
Some 59 per cent of landlords say they have seen an increase in late payments amidst the current financial climate.
And 56 per cent of landlords have had tenants move out as they could no longer afford the rent while 55 per cent have also found themselves reducing rent at least temporarily to support tenants during this time.
Landlords in Yorkshire and the North East see the highest amount of late payments each year, at around 3.4. Those in Greater London are owed the most, at £806.
