Homelessness charity Crisis highlights that this surge in repossessions reflects the devastating effect of the cost of living crisis on renters.
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Homelessness charity Crisis highlights that this surge in repossessions reflects the devastating effect of the cost of living crisis on renters.
New figures from the Ministry of Justice show that rental evictions in England and Wales have skyrocketed by 98% in just one year. According to official data, repossessions by landlords reached 5,409 between October and December 2022, which was almost double the number recorded in the same period in 2021.
The Ministry of Justice stated that the number of mortgage and landlord repossessions has steadily risen throughout the year and that the October to December 2022 numbers show a significant increase when compared to the same period in 2021. However, the department cannot yet determine if this trend will continue at the same pace in 2023. The MoJ also noted that the overall repossession figures have not yet reached pre-pandemic levels.
Additionally, there has been a noticeable increase in landlords taking legal action against tenants in the county courts of England and Wales. When compared to the same period in the previous year, landlord repossession claims rose by 42%, orders for possession increased by 135%, warrants rose by 103%, and repossessions surged by 98%.
The recent record-high rental prices in the UK are the result of a severe shortage of rental properties and intense competition among renters. This has resulted in long lines for viewings and some renters paying above the market price. A survey conducted by homelessness charity Crisis in December revealed that nearly one million low-income households in Britain feared eviction in the coming months.
With the spring budget set to take place on March 15th, Crisis is calling on the government to better fund housing benefits so that it covers the actual cost of rent. The charity's findings highlight the devastating impact that the cost of living crisis has on renters.