Monday, August 24, 2015

Tenant evictions reach six-year high amid rising rents & benefit cuts in UK

This is what's happening with English residents & citizens in their own country, in UK, that not only government has cut down on the social benefit payments the public used to receive, but they are also now evicting tenants who can't pay rents, due to a hardship has fallen upon them.

Developing countries don't have the social safety net which can help residents & citizens when they fall upon hard circumstances, but it seems like that developed countries are going the same way.

If you are thinking it's just the story of one country, UK, then you are sorely mistaken. Although, you should realize that London is considered one of the financial hubs of the world, right beside New York. The cruel irony is that the number of homeless people in New York City has also doubled in the past decade (2004 - 2014).

I believe it's safe to assume that a homeless Briton looks no different from a homeless American or a homeless Pakistani or a homeless Syrian or a homeless Nigerian or a homeless Iraqi or a homeless Somali. I think you get the picture.

Who do we blame for this rising inequality in this "modern" world of 21st century? Governments, economy, financial systems, businesses, elites, corruption, immigrants, terrorism etc.?
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The number of tenants evicted from their homes is at a six-year high, according to new figures, as rising rents & cuts to benefits make tenancies increasingly unaffordable.

County court bailiffs in England & Wales evicted more than 11,000 families in the first 3 months of 2015, an increase of 8% on the same period last year & 51% higher than 5 years ago.

The increase in the number of tenants losing their homes means 2015 is on course to break last year’s record levels. Nearly 42,000 families were evicted from rental accommodation in 2014, the highest number since records began in 2000.

Rental prices have soared in many UK cities but wages failing to keep pace with rising costs & caps to benefits have left many poorer tenants unable to make payments.

Separate figures also ... showed almost 59,000 households have had their benefits capped in the past 2 years. Nearly half of those families were in London, where the average monthly rent for a two-bedroom home is £2,216.

Housing charities said the figures were a glaring reminder that many tenants were struggling to maintain a roof over their heads, & they called on the ... government to do more to tackle a housing crisis in the UK.

The latest repossession statistics, published by the Ministry of Justice, reveal the highest number of evictions in a single quarter since 2009, when comparable records began, with nearly 126 families forced out every day.

Between January & March, 11,307 tenants & their families were evicted by bailiffs, compared with a figure of 10,380 between October & December last year, & 10,482 in the first quarter of 2014.

The record figure comes as the number of landlord repossession claims ... also rose. Claims were up 10% on the last quarter, but at 42,226 they remained below a six-year high of 47,208 in the first quarter of 2014.

Claims by both private & social landlords were up, the figures showed, although most of the rise was explained by claims by the latter. Social landlords were behind nearly 5 times as many attempts to recover properties than private landlords, the figures showed. These landlords are typically housing associations providing homes at lower rents than the market rate, often to tenants who receive housing benefit.

In the first 3 months of the year, 64% of possession claims were made by social landlords. These 27,204 court actions came alongside 5,551 made by private landlords & 9,741 accelerated claims, which could have been by either social or private landlords.

In May 2014, when the threat of evictions reached its highest level for a decade, the National Housing Federation, which represents housing associations across England, told the Guardian the bedroom tax was causing problems for social landlords. The policy cuts the amount of housing benefit paid to social housing tenants whose homes are deemed too large for their requirements. Benefit sanctions were also thought to be causing problems.

But many housing associations, particularly in London & the south-east, have turned out tenants as they have sought to redevelop generations-old estates to take advantage of the big rise in property values. This has in turn led to an increase in the number of grassroots campaigns to oppose evictions, such as the Focus E15 mothers.

The MoJ figures came on the same day as the Department for Work & Pensions revealed that 58,690 households across the UK had their benefits capped to a maximum of £26,000 a year since April 2013. Londoners were the worst affected, with 26,636 families facing a cut in benefits over the period to February 2015, followed by 5,953 in the rest of the south-east.

DWP proposals to meet the Conservatives’ pledge to cut £12bn from the welfare budget, in documents leaked to the Guardian last week, included barring under-25s from claiming housing benefit, increasing the bedroom tax on certain categories of tenants, limiting welfare payments by family size & freezing welfare benefits at current levels.

Responding to the eviction statistics, Campbell Robb, chief executive of Shelter, said: “Today’s figures are a glaring reminder that sky-high housing costs & welfare cuts are leaving thousands of people battling to keep a roof over their heads.

Every day at Shelter we see the devastating impact of a housing market at boiling point, with the cost of renting so high that many families are living in fear that just one thing like losing their job or becoming ill could leave them with the bailiffs knocking at the door.

The new government must make sure people aren’t left to fall through the cracks & hurtling towards homelessness by preserving, if not strengthening, the frayed housing safety net to protect ordinary families desperately struggling to make ends meet.”

Betsy Dillner, director of the campaign group Generation Rent, said: “These record eviction figures & signs that they are accelerating are a stark reminder of the housing crisis that the government must urgently start taking seriously now they’re back in power.

Whether it’s an inability to pay expensive rents or a landlord’s desire to take back their property, the fact that more than 40,000 families were forced out of their homes last year is a symptom of the government’s failure to create a sustainable housing market.”

The housing minister, Brandon Lewis, defended the government’s performance, pointing out that mortgage repossessions had fallen drastically, keeping owner-occupiers in their “hard-earned homes”.

He said: “Mortgage repossessions continue to fall at 56% lower than this time last year, & the lowest annual figure since the series began in 1987. Meanwhile, numbers of county court mortgage possession claims continue to fall to the lowest quarterly number since records began. This is thanks to our work to tackle the deficit & keep interest rates low, helping more families to stay in their hard earned homes.

There are strong protections in place to guard families against the threat of homelessness. We increased spending to prevent homelessness, with over £500m made available to help the most vulnerable in society & ensure we don’t return to the bad old days when homelessness in England was nearly double what it is today.”

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