A rise in court possession, landlords turning to court for help with arrears

December 8, 2011

CIA Let Property Blog

A rise in court possession, landlords turning to court for help with arrears

With rising rents, pay freezes and even fewer jobs, more and more tenants are struggling to keep up with rent payments. This has led to a rise in court possession orders and landlords are giving up trying to claim back the arrears themselves and heading to court.

One insurance firm have claimed that out of 40% of courts in England and Wales between a 10% and 50% rise in claims ending in possession for landlords and agents, up on last year.

As tenants are struggling now more than ever to find rent payment money, the number of applications for possession has increased by 6%.

Rent guarantee insurance is now being taken out by landlords more than before, this being an important tool to help if your tenants do go into rental arrears.

Most landlords are now saying that they are rising their rental costs due to the costing of running a property portfolio also rising.

Research group BDRC Continental have published a new report that shows one fifth of landlords claimed their arrears had risen in the last quarter, also they claim almost half of them had experienced arrears.

BDRC Continental also found that 72% of those who have sought possession of their property were made to do this because their tenant had gone into arrears. Anti-social behaviour counted for half of possessions.

Source – rman.co.uk

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