If you are of working age and live in social housing your ability to meet your rent will be made much harder in 2013. This will, in all likelihood, make the risk of losing your home much greater. This is against a backdrop of already rising possession claims being issued at county court by landlords and orders for possession obtained. The latest quarterly UK government figures for possession claims in the county courts show that 42,520 landlord possession claims were issued; 28,473 landlord possession claims led to an order; 15,672 warrants for possession were issued for landlords and there were 9,266 actual repossessions for landlords by county court bailiffs. All these figures were higher than in the previous year. Since 2010 there has been an upward trend in repossessions by landlords.
It is very likely that the combination of recent welfare reforms will make people’s ability to pay their rent and avoid repossession action, much more difficult. These reforms include:
Since 42,520 claims for possession were issued in the three months pre the April 2013 welfare reform changes, it is likely that this figure will rise significantly from April 2013 onwards. Erol Izzet, Senior Housing Solicitor at Duncan Lewis warns against focusing on the ‘bedroom tax’ as the welfare reform which will have the most significant affect on tenants’ ability to meet their rent. It is the benefit cap, he points out which will, in all likelihood, have the most dramatic affect on a person’s ability to meet their rent. Whilst there has been a great deal of focus on the ‘bedroom tax’, affecting people’s ability to meet their rent, this he argues is misguided.
If you’re affected, your Housing Benefit will be reduced to make sure that the total amount of benefit received isn’t more than the cap level. If you live in Richmond upon Thames; City of London; Sutton; Bedford or Luton you will be in the first tranche of the benefit cap roll out, from 15 July 2013.
If you live in one of the local authorities listed below, you will be in the second tranche of the roll out, likely to be from 12 August 2013: Bexley; Barking and Dagenham; Barnet; Birmingham; Bradford; Brent; Brighton and Hove; Bristol, City of; Camden; Cardiff; Ealing; Greenwich; Hackney; Hammersmith and Fulham; Harrow; Havering; Hillingdon; Hounslow; Islington; Kensington and Chelsea; Lambeth; Leeds; Leicester; Lewisham; Liverpool; Manchester; Newham; Nottingham; Redbridge; Sandwell; Sheffield; Slough; Southwark; Tower Hamlets; Walsall; Waltham Forest; Wandsworth and Westminster.
At Duncan Lewis we recommend early action to reduce the risk of repossession. Our specialist team of Housing Lawyers throughout London and across the UK can help defend claims for possession. Legal Aid remains available to tenants who face possession proceedings. A letter from a landlord threatening proceedings would be sufficient to trigger eligibility for free legal advice & assistance.
Author, Erol Izzet of Duncan Lewis is a Senior Solicitor & Supervisor specialising in Housing Law.