Some may even face the prospect of rent arrears as job losses continue and job availability shows no signs of rapid upward movement. Specialist landlord support service Helpland gave their advice for any landlord stuck with rent arrears this year, or even needing to evict tenants who persistently leave them out of pocket.
UK rents has been showing positive growth in many sectors of the country for some time, particularly in London where the average rent rose to over £1,000 per calendar month during the summer last year. However, some eight months on and even the capital’s banking and finance workers face fresh redundancy drives and reduced bonuses. Rents in affected areas have accordingly fallen slightly, as job vacancy figures in the traditional City of London financial district fell by over half on the year before.
Landlords across the country are also advised to come to terms with the affordability factor for tenants from all professional sectors. In some areas, tenants appear willing to seek alternative accommodation to reduce costs.
Lee Daniels, director of Helpland Ltd, the tenant eviction service, commented:
“For the year ahead, it’s important to note that there has been an adjustment in employment conditions, even in the traditionally safer sectors. Landlords could find themselves with rent arrears that they cannot manage, and need advice to evict tenants if the arrears begin to mount.
"Many landlords need to protect their own finances, and persistent non-payment could put them at risk. We can advise on all aspects of tenant eviction, including legal remedies such as a section 8 eviction notice, which can in some cases provide a workable solution to unpaid rent.”
Tenant eviction statistics from Credit Action for March this year stood at a total of 388 landlord possession claims issued every day, with the courts daily granting 275.
2011 saw an average of 82 people daily entering a period of unemployment lasting over 12 months and by March, one person was being declared bankrupt or insolvent every 62 seconds of the working day. With the UK jobs market still more precarious than in previous years, many experts feel that continued rental increases are simply unsustainable.
Moreover, by early March, the number of county court landlord possession order claims had increased by some 20% in the previous three years. Since 2007, the number of cases of tenant eviction by private landlords has actually increased by 17%.
Daniels added:
“17% is a very large increase and there’s no doubt a large number of these cases will have been due to rent arrears. There can be other issues of course, like anti-social behaviour and/or damage to the property. We support landlords no matter what their initial reason for seeking help may be, whether it is a case of anti-social behaviour, or simple non-payment of rent."
