Over the last few months there has been a gradual increase in possession claims by landlords and housing associations due to rent arrears. Some may feel at times it is done with inadequate consideration for individual merits of each case which would otherwise provide valid reasons for the arrears.
The economic climate as we know it today has justified a budget cut which in some cases has resulted in grave consequences. A significant and detrimental cut in relation to housing matters has been the housing benefits. This is subsequent to the “bedroom tax” which many are aware was introduced as part of the Welfare Reforms on 1st April 2013. As of today, those with a spare bedroom incur a 14% reduction to their housing benefits and 25% for those with two. Consequently the gap must be compensated for, which is what most are struggling to do and naturally they cannot keep up with their rent payments.
According to False Economy, approximately one in three council housing tenants had fallen behind on their rent subsequent to the tax just within six months of its introduction. For most people it would have been their first time. It suffices to say that to remain optimistic about receiving or equally submitting a payment in such cases would be wholly unrealistic. Alleviation of such figures could be achieved by all relevant parties simply through the adoption of a conscious eye in prospective eviction cases.
Accordingly, some Boroughs acted pre-emptively to moderate the effects of the tax. Earlier this year in March, during a consultation with the local organisation iHOOPS, Islington Council representative Cllr James Murray, pledged that eviction would not be taking place if tenants had “no other option”. Similarly Brighton and Hove City Council was actively considering the prospects of implementing a formal policy to this effect.
Court proceedings are often a tedious process for individuals to endure especially when the situation is through no fault of their own. Equally it is time consuming and costly for landlords and presents various other practical difficulties. Some cases may prove to be so dire with no prospect of the landlord ever receiving a payment which limits funds for building new homes. In these cases a balance must be struck to achieve an outcome agreeable to both parties.
Perhaps upon grasping these principles, this understanding will echo in the reality of the sector. Such awareness will be a step in the right direction to improve the quality of UK living which we are so famously renowned for.