Aug

NEW: ‘Grim’ evictions data shows cost-of-living crisis already hitting poorer tenants

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Shelter has jumped on the most recent government repossessions data which reveals that bailiff warrants rose by 39% between and April and June compared to the same period last year.

It says these figures are proof that the cost of living crisis is beginning to bite at the budget end of the private rental market and has claimed that the total number of eviction proceedings is now back at pre-pandemic levels, before the eviction ban took effect.

But experts warn that the figures should be looked at in context. Repossession levels are low compared to the four million PRS households in England and just 3,405 bailiff warrants were executed during a three-month period, which is significantly below the high-point of the 1990s.

Also, despite claims to the contrary, LandlordZONE’s analysis of the figures indicates repossession levels remain below pre-pandemic activity.

But Shelter is keen to suggest that an evictions tsunami is already enveloping poorer tenants as the economy cools, and justify its call for Ministers to reverse the housing benefit freeze so it reflects real housing costs.

The Ministry of Justice figures suggest this tsunami has not yet hit the PRS although, given the cost of living crisis has only just begun, it’s probably just around the corner.

Polly Neate (pictured), Chief Executive of Shelter, says: “Today’s figures paint a grim picture of households across England unable to keep their heads above water as the cost-of-living crisis bites.

“People who don’t leave their home before the bailiff comes are the ones who have run out of options and have nowhere else to go.

“Whoever becomes the next Prime Minister needs to get a grip and put ending the housing emergency at the top of their to-do list.”

Financial difficulty

Tim Frome (pictured), Associate Director at Hamilton Fraser, says: “From running the Property Redress Scheme, mydeposits and Landlord Action we are seeing more and more examples of tenants getting into financial difficulty and the knock on effect this can have on their tenancy.

“Shelter’s request for the government to unfreeze housing benefit could provide short term respite and we would recommend tenants raise any concerns they have with their landlords as quickly as possible.

“We have found early and transparent discussion is the best way to find solutions to keep tenancies going.

“As we saw all during the pandemic and since, landlords do not want to lose good tenants so will in most circumstances work with their tenants to find suitable solutions.”

Lewis Shaw, founder of Mansfield-based Shaw Financial Services: “Now that the Government moratorium on repossessions is over, it’s unsurprising that we’ve seen a considerable rebound, albeit still at lower levels than pre-Covid.

“However, with the cost of living crisis looming over us, it’s odds on that these figures will continue to rise as people’s disposable income is stretched to breaking point.”

Read more about Shelter.

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