The Government has just announced that they are intending to significantly increase court fees to resolve tenants and landlords legal disputes over rent arrears. Landlords and tenants have condemned the government’s intentions and even Shelter has the same opinion.

The MOJ’s (Ministry of Justice) proposal is that for these types of disputes that the cost will be increased by £75. This not only applicable for landlords wishing to retrieve their properties back from tenants for non payment of rent, but also mortgage lenders wishing to repossess from homeowners who cannot keep up with their mortgage instalments.

The hike will take the court fee at a County Court to £355 which will contribute an extra £17million into the MOJ’s coffers.

Landlords are up in arms as the increase would also be levied upon those wishing to reclaim their property because of anti social behaviour and or rent arrears.

The MOJ’s consultation process ends at the end of February and it states that the fee “would in most cases be added to the debt to be recovered from the losing opponent”.

Campbell Robb, Shelter’s chief executive, said: “This is yet another blow for those [coping] with the trauma of losing their home. With the cost of housing sky-high, we are hearing from increasing numbers of families who are terrified that just one thing, like an illness or job loss, will leave them homeless.

“Politicians should concentrate on making sure we have a strong safety net to catch people before they lose their home, rather than saddling them with more debt when they do.”

A MoJ spokeswoman said: “It is only fair that wealthy businesses and individuals fighting legal battles pay more to ease the burden on taxpayers of the cost of running our courts... Waivers will be available for those who cannot afford to pay this fee.”

Richard Merrick of PIMS, said: “Yet another indirect tax forced upon landlords who for perfectly valid reasons are trying to repossess their property. Once again the government is considering penalising landlords who provides homes to people that enter into an agreement to pay for their home.

“Why should there be another barrier set in place that will only benefit anti social and non paying tenants ....that again will live scot free whilst the process takes its more expensive course?”