Nearly 8,800 more tenants were over two months arrears during the first quarter of 2012 than in the last quarter of 2011.
In Q1 2012 an average of 94,400 tenants in England and Wales were in severe arrears.
At the current rate of growth, the number of renters facing arrears greater than two months would climb above 100,000 in the next quarter.
Despite the increase, tenancies in severe arrears represented 2.4% of all properties in the private rental sector in England and Wales in the first quarter of 2012.
Although the number of cases with tenants with arrears of more than two months continued to climb, overall tenant arrears have improved with 9.3% of all rent late or unpaid by the end of February.
This was a decrease from 10.7% at the end of 2011.
Paul Jardine, director and receiver at Templteon LPA, said: “While the general tenant population has absorbed the rising cost of renting in the last two years, a minority of tenants are facing severe financial difficulties –a minority that is growing.
“These tenants have been pushed into deeper and deeper arrears by a combination of rising living costs, high rents and a weak labour market, and are now months behind with the rent cheque.
“In turn these severe rental arrears figures have been inflated by the ongoing impact of county court closures. The closures have prolonged arrears cases, with landlords less able to gain court dates to quickly remove non-paying tenants.”
Jardine said this was creating a backlog of tenants in extreme arrears, increasing the amount of rental income lost for landlords or their appointed receivers of rent.”
He continued: “Despite the recent surge in severe arrears cases, overall tenant arrears have performed remarkably well given the challenging economic environment.
“In fact as we often see at this point in the year, more financially robust households are now paying down post-Christmas debt and putting their finances in order, which is helping to reduce the overall level of tenant arrears.”
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