The fourth quarter of 2012 showed a 15.6% drop in the number of tenants in arrears of more than two months according to Templeton's LPA's Tenant Arrears Tracker. This is the first time this figure has dropped in over a year, as the preceding four quarters showed an average rise of 10.8% each quarter of tenants in severe arrears.
This positive news is tempered slightly by the fact that court orders relating to evictions rose by 5.5% in the third quarter. However, this figure is likely to become healthier when the effect of the drop in severe arrears filters through the market.
The actual number of tenants in arrears of more than two months totalled 86,000 in the fourth quarter of 2012, which was a drop of 16,000 on the previous quarter. This figure has not been this low since the fourth quarter of 2011.
These positive figures are consistent with other improvements in the market, such as the fact that between October and November this year there was a 0.7% drop in the overall number of tenants in arrears.
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