Tenants missing their rental payment date has dropped to its lowest incidence rate since 2008, according to the latest index released by LSL Property Services.
Arrears from tenants have declined by a substantial £50 million, as the sector shows promise for the new year.
The news will no doubt be welcomed by those in the market for landlord insurance. This is also especially surprising as rents across the UK and Wales reached their highest ever level in October.
On average, tenants across the UK were paying £758 last month. This average is in accordance with the steady rise in rents that the market has witnessed since 2010.
When compared with this time last year, rents are 1.9 per cent higher. The figure is an all-time high for rents in the UK.
Landlords will also be pleased to hear that October showed an annual increase where lettings are concerned. The figures show that new tenancies across the UK grew by 7.4 per cent on last year.
September actually showed a slight decrease with 1.6 per cent fewer tenancy agreements, October, however seems to have been an all round much stronger month for the private rented sector.
David Newnes, director of LSL Property Services, said: “At a time when a seasonal slowdown would usually be expected rents are up again. The lettings market appears to be experiencing an extended Indian summer.
“Normally we can expect the rush of early autumn to fade into a late autumn hibernation. Even as the nights draw in, demand for homes to rent seems unabated, and still well ahead of a year ago,” he added.
Mr Newnes went onto say that the recent rise in rents was a very positive sign regarding the health of the lettings market.
With government project Help to Buy, encouraging first-time buyers back into the market, these positive figures are likely to give landlords much more confidence in the lettings sector.