Piggybank News

June 4, 2009

The increasing cost of rent arrears.

Filed under: Property — nspresources @ 9:47 am
Tags: , , ,

Tenant eviction has always been the last port of call for landlords, not least because the process is extremely time consuming and costly.  However the situation is set to get worse as a steep rise in the number of current tenant evictions is causing a backlog at the courts, meaning it can take over two months just to get a hearing date.

Owing to the recession and increasing levels of redundancy and unemployment, many tenants are unable to pay their rent, leaving some landlords unable to pay their mortgage.  This leaves them with no choice but to commence eviction proceedings or face repossession.

Landlords financial problems don’t get a whole lot of media sympathy but the truth is that if the landlord goes bankrupt then all his properties may be repossessed which affects the good tenants as well as the bad.  Around 35,000 landlords were behind with mortgage payments in the first quarter of this year and at the moment tenants of repossessed landlords can be given as little as two weeks to get out.

Unfortunately with unemployment expected  predicted to hit three million next year, rental arrears are expected to go up too which means that the situation is unlikely to improve.

j0283695(Piggy says “From the tenants point of view there is a small ray of light at the end of this particular tunnel as the Government has recently announced that they will be changing the law so that tenants in danger of losing their homes when their landlords are repossessed will be given two months’ notice to quit.)

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