New research from the NLA (National Landlords Association) has shown that advice given by Debt Charities to ignore eviction notices is costing Landlords as much as £7,000.
The report revealed that a massive 47% of tenants have been told to ignore a section 21 eviction notice by debt charity advice services. The services named include organisations such as Shelter and the Citizens Advice Bureau.
In cases such as this, it is suggested that Landlords lose an average of £6,763. Measures are being taken to address this problem with ‘The Homeless reduction Bill, which has been introduced by Tory MP Bob Blackman. This new act adapts the Housing Act of 1996, expanding the local councils duties that a section 21 eviction notice is sufficient proof that an individual is seriously at risk of homelessness.
Richard Lambert, CEO of the NLA said “We have constantly campaigned on this issue but despite many warnings to councils and agencies, this damaging advice is still being given out to tenants. Possession cases can take a very long time to resolve and aide from putting unnecessary strain on everyone involved, not to mention the courts, these finds demonstrate just how costly the advice can be”
It is hoped the new bill will reduce homelessness by forcing the government to introduce new measures to tackle the problem, thus reducing the crippling costs some Landlords are facing on a daily basis.
The demand for Debt Collection services for unpaid rent has escalated rapidly over the past years. This latest news will only provide further angst for the UK’s already anxious private rental industry.