He commented: “With nearly half a million public sector jobs axed in the next four years, we are going to see a surge in the number of tenants unable to meet their monthly rents.
“Rents are already at a record high, and with a new wave of redundancies and job losses likely to hit thousands of households in rented accommodation, tenant finances will placed under an even greater strain.
“And as many tenants fall behind in their rent, we are likely to see landlord arrears rise over the medium-term. In this environment, it is even more vital that landlords closely monitor their current tenants’ payment performance – not to mention vet prospective tenants even more rigorously.
“However, this knock-on effect may be partly off-set by increasing demand from would-be social tenants. With new tenants needing to meet 80% of market rental value, thousands of potential social tenants may now opt to enter the private rental sector rather than face a long waiting list for a much less attractive deal.
“Supply is still limited, and this increased demand should allow landlords to raise rents even further in many regions.”
