A legal consultancy says government plans to increase court fees from later this month are extortionate and could force landlords into trying to beat the increase deadline.
The changes from 22 April 2014 mean fees for possession claims will increase by 60 per cent. Currently the application for possession, which is used after service of a section 8 notice, costs £175 - but this is rising to £280.
The possession claim online service, which can only be used after a section 8 notice is issued on rent arrears grounds, currently has an online discounted fee of £100 but this will rise by 150 per cent to £250.
The government says the new fees reflect the true costs by Paul Shamplina for consultancy Landlord Direct says the rises are ludicrous and will have a huge impact on letting agents and landlords who have to start eviction proceedings.
Landlords who are seeking possession of their property are usually already in financial difficulty due to rent arrears or damage to their property, so increasing the cost of fighting this battle, and by such a significant jump, seems wholly unfair says Shamplina.
We will try to swallow some of these increases [but] we will inevitably have to pass some of this on to our landlords and agents. It is actions such as these which discourage new landlords from entering the market, which is concerning at a time where there is a desperate shortage of rental stock he says.
The only fee which is not rising is the warrant of possession when a bailiff is required, which remains at £110.
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Comments
Paul...why should the taxpayer part fund the cost of a private landlord removing the tenant The court service for private possession hearings is not a public function