North West tenants are struggling with rental payments, according to the Association of Residential Letting Agents (ARLA).

Results from the latest ARLA survey show that 55 per cent of members have seen an increase in tenants struggling to meet their rental payments.

As a result, some landlords are taking desperate measures to improve cash flow. Almost one in ten (9 per cent) have cancelled insurance on their properties to save money* as tenants fail to pay on time.

William Jordan, managing director of North West residential letting agents Jordan’s, said: “With rising unemployment, it is inevitable that many tenants have been forced to default on their rent. Although it may seem a good time for landlords with high rents and low interest rates, many are hugely concerned about the future and their cash flow. “ As rental arrears stack up residents run the risk of being evicted. Simultaneously, landlords could be forced to default on their mortgage repayments which could lead to the property itself being repossessed.

To address the issue of landlords facing financial difficulty when tenants do not pay on time, Jordan’s has launched On Time*, a market first, which ensures landlords are paid on the same day every month, regardless of when the tenant pays. “Many are trying to cut costs any way they can. Even if the tenant pays their rent a few days late, it can have a huge effect on cashflow for the landlord. The lettings industry must take responsibility and help landlords where possible,” William added.