Landlord and Tenant Solicitors firm, Landlord Action, says that any extension to the ban on evictions could cause financial ruin to landlords who already had possession cases for rent arrears going through the courts prior to the ban.
Some landlords with pre Covid-19 possession cases will find themselves trying to cover more than a year’s worth of rent if the courts are unable to resume existing cases from 25th June.
According to Landlord Action, following the government’s ban on evictions in March, there is an estimated 25,000 cases stuck in the legal system, of which 10,000 are from private landlords. With over 500 live possession claims with the courts,
Landlord Action Founder, Paul Shamplina, says he is being contacted daily by landlords who launched eviction proceedings against tenants for non-payment of rent before the ban and are now facing financial collapse.
The Labour party has published a five-point plan which includes calls for an extension to the temporary ban on evictions from three months to six months.
Commenting on Labour’s plan Paul Shamplina, Founder at Landlord Action, said “We understand and agree that it will take many months for people to recover from this crisis and adequate support to prevent homelessness is absolutely essential. However, I do believe that existing possession claims should be treated separately to any tenancy issues that arise as a result of Covid-19. Cases where rent arrears had already built up for months and landlords had sought action prior to the pandemic should be prioritised as these landlords will be taking the biggest financial hit.”
“If the ban on evictions is extended for existing cases as well, there will be thousands of landlords who, by the time they are finally able to gain possession of their properties, will have up to years’ worth of rent arrears, maybe more. I dread to think how the court systems will cope towards the end of the year.”