Effects of house crash on economy

Apr 13, 2004 62 Replies

I agree, and believe that honest people should be given a chance to rectify things. Far better to have a tenant who stays and pays, rather than having to start all over with the empty periods and a new relationship.

However, in the nicest way, how long do you give an honest person to sort things out, before the honest landlord should get his asset back so he can start earning again?

If it is 6 months, then fair enough, although how many people, honest or otherwise, could actually repay the arrears of £3,000, or so, and keep up with the current rent - and why should the landlord have to incur this loss if it arises.

I would suggest that a landlord should be able to begin the process to regain possession just as soon as the rent is 2 months in arrears, (i.e. at the beginning of month 2 if rent is payable in advance), and that there should be a system for gaining an order for possession days after the 2nd month is up. If this means that the court notice period is 28 days, and the bailiffs then take 28 days, it would still be around 4 months with no rent before gaining possession - unless the tenant went voluntarily.

It could be part of the process that, if the tenant pays the arrears in full before say, the date at which possession is ordered, the order is suspended.

This would give the tenant a reasonable chance to rectify things if it is possible, or time to vacate if it is not.

Not easy but, as a supplier of "goods or services", whether retail, or business to business, you can cease supply at any time. So, if your policy is to stop supply after 2 months "arrears", that is as high as the debt can grow.

With rented property, after 2 months arrears, the debt can treble by growing for another 4 months or so.

That seems reasonable, but I don't think it would avoid people abusing the system. I'm guessing it would be difficult to get a court order if someone presented a "plausible" excuse to the court (e.g., illness).

Thom

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