Planned changes by The Ministry of Justice will lead to the cost incurred for evicting a tenant rocketing by up to 150% from the 22nd of April 2014.
The planned increases will mean that the fee for serving Section 8 and accelerated Section 21 notices will go up from £175 to £280, along with the Possession Claim Online service (PCOL), which will increase by £150, from £100 to £250.
The new prices have been cited as reflecting the increased cost of court fees and reinforced by the Government that stated “the benefits brought by a simplified approach with a fee which reflects the average cost of issuing such proceedings justifies the change.”
Richard Durrant, Lettings Director at Intercounty adds “the increasing costs incurred by issuing notice to tenants’ highlights the importance of good property management. With the help of a dedicated rent arrears team, Intercounty’s 1.3% of tenants in rent arrears lies well below the 6.6% National Average. This is complimented by strict referencing checks, continual monitoring and management of tenants as well as a clear understanding of the legal obligations.”
Lawyers have argued that Landlords are extremely unlikely to recover the costs incurred as tenants are typically experiencing financial difficulties when they are served with the majority of repossession proceedings.
If you would like further advice on serving notice or how we can help manage your tenancies, then get in touch with us by calling an a member of our property management team on 0844 8111090 or by popping into a local branches and speaking to one of our lettings specialists.