More tenants struggle as Court orders repossession

As the economy continues to be in the dull drums, and tenants are feeling the squeeze, feed up tenants are giving up on trying to claw back arrears and are now seeking possession orders from the courts

According to a recent report by Let Insurance Services, the number of orders granted for repossession has increased in the last 12 months from 10- 50%

Let Insurance further added that they have seen increase of 24% in landlords taking out Rent Guarantee Insurance, in the first 6-9 months of the year, along with a much higher percentage of arrears notifications over the same period.

Landlords and agents having tried the rent arrears protocol of an arrears payment plan now see that the Courts as the only option. Tenants have become much more aware of the law regarding arrears, and are using this as a stalling tactic, before ultimately getting removed by Court Bailiffs.

Many Landlords and Bristol Letting Agents are now foregoing seeking possession for both rent arrears and possession and only seeking possession orders, and this is quicker and ultimately they feel that it is futile to chase tenants for rental arrears if they have no money to pay the original rent. Landlords are finding it an easy and quicker route to securing a new tenant who will hopefully not go the same route.

Ever increasing costs, on fuel and food prices, along with public sector job losses is not going to make the situation any easier either. MD Michael Portman further commented “Against this backdrop, as rents rise over the medium term, a growing number of tenants will see their finances come under mounting pressure – and we expect tenant arrears cases to climb over the next 12 months.”

In a further report by BDRC continental they suggest that almost three-quarters (72%) of those who have sought possession of their rental property were driven to do so by rent arrears. Other reasons for seeking possession include anti-social behaviour, which contributed to nearly half of possessions. Landlords wait an average of almost four months to obtain possession and pay £866 in legal fees alone.

Bristol letting agents Igloolets.com spokesperson Kevin Cox said "It is now more than ever for a Managing Agent to keep an eye of arrears, to make sure that tenant keep on track with rental payments, it is an impossible task for many once they slip for a month, to ever repay that amount. We adopt a strict policy of serving appropriate notices on defaulting tenants. It is what is called cruel to be kind, it is no point in many tenants having to go through all the stress of a court case, they might just as well leave, it saves a lot of stress, expense and inconvience all round"