The growing trend of evicting private rental tenants

THE EVICTION of private rental tenants is on the rise as homeowner repossessions fall, new research has revealed.
Picture: Andrew RoePicture: Andrew Roe
Picture: Andrew Roe

Figures from the Ministry of Justice show that, between January and March this year, bailiffs repossessed nearly 11,000 rented homes – a 5% increase on the last quarter when seasonally adjusted. In fact, being evicted from your home by a private landlord is now the leading cause of homelessness in the UK.

According to the housing charity Shelter, every day 117 families become homeless in Britain.

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Meanwhile, repossessions of homes fell to the lowest rate on record during the same period. According to the Council of Mortgage Lenders (CML), just over 2,000 homeowner and buy-to-let properties were repossessed between January and March. And if this downward trend continues for the rest of the year, annual repossessions will be at their lowest since 1982 – when there were almost half the number of mortgages there are today.

Mortgage arrears also fell, meaning that for the first time in ten years there were less than 100,000 mortgages in arrears of 2.5% or less.

Director General of the CML Paul Smee said lenders have been working well with borrowers to help them during tough periods, and “borrowers should be reassured that most cases of arrears can be resolved and will not lead to repossession.”

So what should you do if you’re worried about being able to afford your rent along with everything else? Well, just as with a mortgage payment, you should treat your rent as a priority bill. This means that it’s more important to put paying your rent first, before any other debts, such as your credit card, store card or personal loan repayments.

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Your property can be repossessed if you fall behind with your mortgage payments and don’t work out a new arrangement. And if you fall behind with your rent, you’re in just as much danger of losing your home. If you’re struggling, make sure you let your landlord know as soon as you can.

However, if your other debts have become too much and you feel you can no longer pay them and keep the roof over your head, it’s worth seeking expert debt advice. The Money Advice Service offers free and impartial guidance on a whole host of financial issues.

There are a number of debt solutions available to help you get your finances in order. A debt solution won’t help you deal directly with paying your mortgage or rent. But where they can help is in reducing or even stopping your payments to other debts (such as credit cards), which should hopefully free up money to allow you to keep on top of your housing costs. In some cases, it’s also possible to build in catch-up arrangements so you can clear any arrears too.

Remember, there is a light at the end of the tunnel if you’re worried about your debts, but you should always make sure that paying your rent or mortgage is your priority.