5th
May 2022
An eviction specialist claims it has seen a huge surge in landlords applying to use its debt recovery service. Between April 2021 to March 2022 instructions from landlords increased by 180 per cent compared to the previous 12 months April 2019 to March 2020 – pre Covid.
Many tenants fell into arrears suffering financial hardship during the pandemic and it is indeed a trickly path for landlords to claw back rental arrears.
However some agents and landlords have found out that some tenants have used the pandemic restrictions such as the evictions ban to their own end by refusing to pay their rent, despite having the necessary finances to do so.
The eviction specialist firm states that in the past landlords were far more interested in regaining possession of their properties and were prepared to write the rental debt off as a bad experience as it was deemed too difficult, time consuming and expensive to be paid back.
The specialist firm cites the English Housing Survey 2020-2021 where four per cent of renters reported they were in rental arrears, and with an estimated 13 million UK tenants which was around 52,000 in serious arrears between 2020 to 2021.
The firm’s spokesperson, says: “We currently have hundreds of live debt recovery cases, ranging from a few thousand pounds right up to one where the arrears have reached £200,000.
Admittedly, this is an extremely rare case, but what many of our cases have in common is that the tenants had the means to pay. For example, one case is against a practising doctor who owes £42,000.
He adds: “If there are substantial arrears and the tenant is employed with a steady level of income, therefore has the means to pay, but has simply stopped paying, it is worth pursuing the money that is legally and rightfully owed to the landlord.
“There are many ways to enforce an outstanding debt such as appointing a High Court Bailiff who can seize goods, apply for a Third-Party Debt Order (freeze bank account) or apply for an order for an attachment of earnings.
“If a landlord wishes to seize goods on the eviction date this can only be done if a High Court Bailiff is appointed.”
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