Student rent arrears increased 20% over the last academic year as the cost of living pushed up, according to new research.
Landlords are also concerned rent arrears will grow as the tuition fee hike starts to bite from September 2012 - when average fees rise from £3,000 a year to £9,000.
The figures come from a survey by tenancy deposit protection service Mydeposits and is based on the breakdown of reclaimed deposits by landlords at the end of the last academic year.
However, the research also found property investors are confident that the student letting market will grow.
Around 1 in 4 landlords rent homes to students, says Mydeposits.
The figures disclosed students paid outstanding rent an average 18 days late, and rent arrears were mainly due to poor money management (69%) rather than problems paying student fees (19%).
Mydeposits chief executive Eddie Hooker said: “It’s encouraging to see that landlords remain positive about the future investment prospects for the student lettings market.
“However, with planned increases to tuition fees just around the corner and tough times ahead for many students, it’s a concern for all that rent arrears seem to be on the rise.”
With the new academic year just over a month away, the National Landlords Association is reminding landlords to focus on getting their tenancies in shape for the next wave of student lets.
The National Landlords Association (NLA) - a co-owner of Mydeposits - has published a list of tips for landlords with tenants in arrears and suggests trying to talk through problems, arranging payment plans and managing credit control to stop substantial arrears building before taking legal action.
David Salusbury, NLA Chairman, said: “It is a sign of the difficult economic conditions that so many landlords are experiencing rental arrears. In these circumstances, landlords should work with their tenants to minimise the impact of financial stress.
“Short term arrears can often be resolved with a sensible repayment plan or a temporary reduced rent arrangement. Landlords should try to help tenants through tough financial times where possible.”
