ACCORDING to the Ministry of Justice 43,000 landlords evicted tenants in the 12-months up to June 2015. That is staggering and shows a worrying trend in the Private Rental Sector that is likely to get a lot worse before better.
That figure is a 50% increase in only four years and I think shows a direct correlation with broken Britain where the much lauded recovery is happening for the wealthy but not for the poor or even some middle class families.
The fact is the Private Rental Sector is mopping up the DSS and social housing needs because the local councils cannot and do not have the housing stock to do so themselves. And when those tenants default, rather than a friendly and understanding ear from the Housing Association that will cut them loads of slack, they are being evicted immediately by landlords trying to make positive cash flow in an ever increasingly regulated industry that is now facing huge tax changes.
And it is those tax changes that ensure the situation will only get worse. Landlords will either leave the market, forcing more evictions, change to houses of mass occupation to increase return and reduce living standards in the process or increase rental prices which in turn will hit the poorest hardest and cause more evictions.
The perfect storm of a recovery that is fuelled by zero hours contracts that is to the benefit of the higher earners and hits the lower earners, along with cuts that mean the social housing capacity is slashed and new tax laws hammering middle income landlords means evictions will increase beyond this level and a real housing crisis looms.
The problem is you can only squeeze so much money out of any person. If a tenant cannot afford basic rent then social housing is the only solution. And the Council and de facto the Government is bound to intercede or face expulsion at the next election.
The same for landlords, if they are being taxed and regulated to a point where they cannot make money at current rent levels, they will be forced to increase rent. That in turn compounds the problem for the social tenants.
And with low wages and working hours, there is a huge swathe of working tenants who simply cannot afford rent either. And with no sign of a housing market slowdown and increasing prices, more and more people are being priced out of the option to buy and need to rent.
The Property Insurer can help landlords with low cost landlord insurance. It can also help tenants with low cost tenants contents insurance. In this ever constricting market, those tens or hundreds of pounds that can be saved may well make the difference between eviction or not.