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Massive rise in tenant eviction orders as landlords are forced to get tough causing outcry from homelessness charity Crisis.

Over the last three years there has been a 70% rise in court orders for the eviction of tenants in the UK Private Rented Sector (PRS).

12% Rise in Tenant Evictions over last 3 years

12% Rise in Tenant Evictions over last 3 years

Homeless charity Crisis set about analysing figures released by the Ministry of Justice that revealed in the last 12 months some 36,211 PRS landlords have been granted a court order for the eviction of tenants, a rise of 12% on the previous year, and 70% higher than the 21,351 court orders for tenant eviction granted in 2009.

The data shows that between 2009 and 2011, almost 10,000 individuals approached their local authority claiming to be homeless due to the end of an Assured Shorthold Tenancy (AST) or because of rent arrears. A rise of 42% on previously released figures.

Duncan Shrubsole, Policy Director at Crisis, said: “Sadly it is no surprise that we are seeing tens of thousands of private tenants facing eviction. They face a dreadful combination of high unemployment and underemployment, draconian cuts to housing benefit and soaring rents. Our concern is that many of these people will have nowhere to turn, and end up falling victim to homelessness. In fact the Government’s own statistics point to this already happening. We are calling on the Government to rethink cuts to housing benefit that will inevitably leave increasing numbers of people unable to pay the rent. We are also in desperate need of more social and affordable housing in order to rein in the soaring rental market.”

Sim Sekhon from the UK’s leading tenant eviction specialists, Legal 4 Landlords commented: “In these austere times UK landlords are being forced to take action with bad tenants or tenants with rent arrears as they simply cannot afford to go without the rent. We have seen a significant rise in tenant evictions in the last 12 months and unfortunately this trend is set to worsen due to the raft of benefit cuts and welfare reforms being pushed through parliament. Landlords are finding their own finances stretched and are having to take legal action for the eviction of non paying tenants before their entire rental businesses go bust. There are ways for landlords to avoid being in this situation but it does require action to be taken before the start of a tenancy, all applicants should be thoroughly tenant referenced and landlords can utilise Rent Guarantee Insurance to keep the monthly rent flowing.”

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Eviction numbers increase as tenants struggle with finances

Evictions for Rent Arrears Increase by 10.2% This Year

County court closures are being blamed for prolonging tenant rent arrears eviction hearings

The number of tenants in severe financial difficulty has climbed by 10.2% in the first quarter of this year according to the latest tenant arrears tracker by Templeton LPA, part of the LSL Property Services plc Group.

Almost 8,800 more tenants were over 8 weeks in arrears and facing the threat of eviction than there were in the last quarter of 2011.

In the first quarter of 2012, an average of 94,400 tenants in England and Wales were in severe arrears, an increase of 20% compared to the same period in 2011.

The figures were affirmed by specialist landlord service provider, Legal 4 Landlords, who handle an average of 20 tenant evictions per day across the UK.

Legal 4 Landlords spokesman Sim Sekhon said: “At the current rate of growth, the number of PRS tenants facing arrears greater than 8 weeks will climb above 100,000 in the next quarter. Tenants have been facing increasing financial pressures due to the state of the economy and the rising cost of living and unfortunately landlords without rent guarantee insurance have been suffering the most”.

Although severe rent arrears cases have continued to increase, PRS tenancies in severe arrears only represented 2.4% of all properties in the private rental sector (PRS) in England and Wales in the first quarter of 2012.

Overall tenant arrears have improved, with 9.3% of all rent either late or unpaid by February 28th, a decrease from 10.7% at the end of 2011.

Paul Jardine, director and receiver at Templeton 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. This is creating a backlog of tenants in extreme arrears, increasing the amount of rental income lost for landlords or their appointed receivers of rent. 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.”

The annual growth in tenant arrears has been matched by a yearly rise in the number of tenants being evicted by court orders.
In the last quarter of 2011 some 24,702 tenants faced eviction notices, an increase of 9% on the 22,634 in the last quarter of 2010, although the figures reported are 4% lower than they were in the third quarter of 2011.

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