After a year of an effective ban on evictions, it appears the policy could cause further problems for tenants and landlords as the unintended consequences stack up.
The NRLA (National Residential Landlords Association) has said that research shows that approximately 840,000 tenants have built rent arrears since the restrictions began.
Some of these arrears are now approaching a level where tenants will simply be unable to afford to catchup even with payment plans.
With the current measures due to relaxed from June, it’s possible there will be a spike in evictions and with the damage to credit scores many landlords will be vary of accepting applications from those tenants.
Most landlords have been working with their tenants to help them as much as possible and as many as 60% have lost rental income and 39% said those losses were continuing to increase, a situation that cannot continue indefinitely.
To make matters worse for Landlords is the backlog in the courts. With so few cases being heard it is estimated that the time to evict a tenant could increase by 6 months after the current restrictions come to an end.
Even if you are lucky enough to secure a hearing and are granted an enforcement order, there is a shortage of bailiffs to enforce it, meaning the losses for those landlords will continue to stack up.
At the moment the main exemption from the eviction ban is substantial rent arrears – 6 months or more – but with the system backed up and the potential relaxation on eviction rules in June the situation could go from bad to worse for many landlords.
If you have a large property or HMO, but with all the uncertainty in the market, eviction problems, potential licensing issues and ever-increasing regulations, you are considering your options, don’t hesitate to give us a call. We specialise in these types of properties and can help you to evaluate your options.
Call 0161 850 5588 or email info@armisteadproperty.co.uk
Thanks for reading
Peter Armistead
Founder, Armistead Property
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