With Manchester City Council recently warning that around 2,000 jobs are at risk, lettings insurance specialist HomeLet are urging landlords in the region to protect their rental income.
Commenting on the news HomeLet MD, John Boyle explained; “Manchester, like many other places in the UK has been hit hard by the Government spending review in 2010. The recently announced cuts will no doubt inflate the unemployment figures for the region and impact many tenants ability to pay the rent.”
According to the Association of Residential Lettings Agents (ARLA) industry survey 40% of landlords reported a rise in tenants having difficulty paying their rent during the previous six months.
John continued: “The figures released by ARLA confirm what we already know, that rent arrears are increasing. We’re helping more landlords than ever before, and we offer a range of insurances that protect landlord’s rental income. Last year alone we paid out over £3 million in lost rent and legal costs. I anticipate that this figure will continue to rise in 2011, especially in Manchester, as more and more tenants find themselves out of work and unable to meet their financial commitments.”
Also commenting on the news that jobs are at risk, David Benyon, HomeLet Key Account Director for Manchester commented: “Manchester is a great city, but the announcement is a real blow to the region's economy. Given the high percentage of people who rent in the city it could have a significant impact for both landlords and tenants alike. We work in partnership with professional letting agents across Manchester who can guarantee a landlord’s rent even if the tenant fails to pay. Should the worse happen, our specialist Claims & Legal team will ensure the rent is paid, but also that the tenant is treated fairly. I’d strongly urge that any landlords who are looking for new tenants ask their local letting agent about guaranteeing their rent, which in many cases is included for free as part of their fully managed service.”