A housing law partner at leading North West law firm, Stephensons Solicitors LLP, believes the bedroom tax is to blame as latest statistics show repossessions of rented homes have reached a five-year high.
The latest Ministry of Justice statistics published this month confirm that between January and March this year, there were 47,220 possession claims by social and private landlords. This is the first stage of the eviction process, and led to 10,475 landlord repossessions – the highest figure in the last five years.
Joanne Ellis, head of housing law at Stephensons in St Helens, said: “We see tenants on a daily basis who are facing possession proceedings and often there are ways we can help them to remain in their homes by working out affordable and realistic repayments with landlords.
“With the bedroom tax now one year old, it is not surprising that people are falling behind on their monthly payments or are unable to move into smaller properties because they’re already in arrears. The changes have put a huge financial strain on families, many of whom could previously afford their rent, and therefore this must have contributed to the increase in rented repossessions.”
The rise in rented possession rates comes in contrast to the outlook for those with mortgages, as mortgage repossessions fell for the sixth year in a row, according to statistics released by the Council of Mortgage Lenders' (CML).
Between January and March 2014 6,400 mortgaged homes were repossessed in the UK, showing a significant decrease from the 8,000 in the same period the year before.
Joanne Ellis added: “While this decrease is promising, it is still a shocking statistic to find that over 6,000 people lost their homes in the first three months of 2014. Low interest rates are currently helping people who would otherwise struggle.
“Regardless of whether people live in a rented home or own it themselves with the benefit of a mortgage, there are ways to address the problem by working out a repayment plan with the lender or landlord. We can help with this and would urge people who are concerned about their homes to seek legal advice urgently. Legal aid is available in some circumstances subject to availability.”
ENDS
Media information: Lianne Tracey and Chloe Kendall
Stephensons Solicitors LLP
Tel: 01616 966 229
Email: lct@stephensons.co.uk or cke@stephensons.co.uk