Introduction of exception for 'severe rent arrears'

As of 17 November 2020 there was another change to the rules which added a further exception, also allowing evictions to be carried out in cases where there are ‘severe arrears’ of rent. 

To be ‘eligible’ there must be:

• Rental arrears equivalent to at least nine months’ outstanding at the time the Order for Possession was granted;

• The arrears must have occurred prior to the 23 March 2020 (being the first national lockdown); and 

• Any arrears after the 23 March 2020 cannot be included. 

It is expected that further guidance will be provided over the coming weeks, but this is certainly very welcome for many landlords and goes some way to address concerns that tenants, who had incurred significant rent arrears even before the pandemic, were benefitting from the restrictions placed on landlords ability to obtain possession.

Navigating eviction generally

Obtaining possession through the courts during these unprecedented times is not straight forward. Additional steps in the already tricky process have been added to balance the impact of COVID 19 on tenants and to help manage the increase in claims that must be dealt with by the courts. 

Review meetings and a push for mediation have been added to the process. Landlords and the courts must now consider the impact of COVID 19 on tenants with the system actively discouraging landlords from simply pushing through to eviction without considering alternatives to settlement.

Our team can provide expert practical and legal advice to assist you in gaining possession of your property and/or resolving any issues with your tenant, whilst taking into account the world in which we currently live  - which is challenging for all.

If court proceedings are required it is imperative that the correct process is followed to avoid any further delays in what is now an extended process.

If settlement can be achieved, then a well drafted settlement agreement provides both landlords and tenants with the security and protection they need to move forward. Landlord's should consider their tenants circumstances and whether in fact a Deed of Surrender can be achieved to the mutual benefit of both parties. 

So what happens when possession is gained and landlords need to enforce a judgment debt against their tenant for rent arrears and or legal costs?

A popular method used by our team at Woodstock to help landlords, is a writ of control - which allows the instruction of a High Court Enforcement Officer to potentially seize the debtors goods to sell at auction to recover the debt. In reality assets are rarely seized and the High Court Enforcement Officers aim to secure payment of the judgment debt in full or by way of instalments.

Whether in full lockdown or not, the pandemic poses practical problems for High Court Enforcement Officers in carrying out their job. Attending people at their homes of course gives rise to health and safety concerns.

During the first national lockdown, enforcement efforts were suspended entirely until 23 August 2020, after which enforcement was able to resume, and enforcement agents were issued with social distancing guidance to adhere to when visiting debtors’ premises. 

However, despite England being temporarily back in a national lockdown, enforcement efforts can still continue provided that High Court Enforcement Officers adhere to the Covid-secure guidance. 

The guidance states that enforcement agents are still able to visit residential properties, though they are not allowed to enter the premises, even if invited to do so by the resident. Enforcement agents can, however, still enter into repayment arrangements with the debtor and take control of goods that are located outside of the premises. 

With regards to commercial properties, the enforcement agent may still enter the premises to take control of goods or enter into a controlled goods agreement. 

This is good news for our claimants who are looking to or are currently in the process of enforcing a money judgment by way of a writ of control. Whilst there are some limitations positive action can still be taking to recover sums owed. 

If you have any questions about recovering possession of your property or securing repayment of a judgment debt during these very difficult times, then please feel free to contact our experienced team and we will be happy to help.