‘No fault’ evictions are to blame for rising levels of homelessness
As landlords take advantage of ‘no fault’ clauses in rental agreements, tenants are finding themselves priced out of their homes when their rental term comes to an end.
It’s no secret that rising rental rates have been a big factor in preventing tenants from saving up for a deposit to buy their own house. Over the last eight years, however, an increasing number of tenants have found themselves facing a fate worse than simply being unable to afford their own home.
With rising sold property prices across the country, landlords have been increasing their rental rates dramatically when a fixed term rental lease comes to an end – and often, these higher rates are too expensive for the tenant residing in the house, leaving them homeless. In fact, the pressure group Generation Rent has discovered that from 2009 to 2017, the number of these ‘no fault’ evictions has almost doubled.
In August, the government launched an £100m initiative to end rough sleeping by 2027 after an analysis in The Observer found that homelessness has more than trebled over the last decade – and 94% of this increase is as a result of ‘no fault’ evictions.
“The ability of landlords to evict tenants without grounds allows them to cash in their assets and leave society to pick up the tab in the form of expensive temporary accommodation and misery for the people affected,” said Dan Wilson Craw, director of Generation Rent.
“Councils have new responsibilities to prevent homelessness, and the government has just launched a strategy to end rough sleeping, but they have no chance of success if landlords can continue to kick out tenants with impunity.”
Of course, the long-term effects of ‘no fault’ evictions are not only affecting those in rental properties of increasing value. Due to the housing shortage, landlords are always able to find tenants with enough money to cover the rental costs, but these new wealthier tenants are – similar to the poorer tenants they replaced – paying so much that their ability to build up savings for their own house is also severely affected – and if a vendor is unable to sell their house fast, the property market could easily begin to stall.
The question on many people’s lips is whether we are starting to see the idea of ‘renting for life’ become the norm for all but the wealthiest individuals across the UK, leaving a large proportion of the population living on the breadline just to keep a roof over their heads.
Need to sell your house fast? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.