Secret’ rises in court possession fees slammed as extortionate Taken from Property Industry Eye Sharp rises in court fees for the possession of rented properties have been described as “extortionate” and unjustified – with criticism that they have been all but kept secret. The barely-publicised changes are due to take effect on April 22. They will raise fees by up to 60%. The consultation quietly took place over the Christmas and New Year period. Only lawyers appear to have been asked for their views, judging by the response. Currently, the application for possession after service of a Section 8 notice costs £175, the same as for a Section 21 notice. Both are to go up to £280 in just under two weeks’ time. The possession claim online (PCOL) service, which can only be used after a S8 notice on rent arrears grounds, currently has a substantially discounted fee of £100. This will rise by 150% to £250, removing much of the incentive to use the online service. Paul Shamplina (pictured), of evictions firm Landlord Action, says the rises are extortionate and only justifiable if a more efficient service is offered in return. Shamplina said: “Are the courts going to employ additional staff to warrant this massive price increase so that landlords are at least getting a more efficient service, such as an earlier hearing date on a S8 claim, or a Possession Order following a Request for Possession on a S21 case within two weeks rather than six?” Shamplina said the increases are apparently being justified in that the landlord will be able to apply for a costs order against the tenant to recover the costs incurred. But Shamplina said this argument is a nonsense: “If a tenant can’t pay their rent, which is often why they are being served notice in the first place, it is unlikely that they will pay a costs order that is not even a County Court Judgment. “The rises are ludicrous and will have a huge impact on those landlords and letting agents that find themselves in the unfortunate position of having 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. “As a company that has fought for the rights of landlords from the start, we have always endeavoured to ensure our services are priced fairly and competitively. “Whilst we will try to swallow some of these increases, at such a great hike, 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.” Landlord Action said that while there has been little warning of the planned rises, it could spark a stampede of possession cases in the next two weeks as word gets round and agents and landlords try to beat the rises. The only fee which is not rising is the warrant of possession when a bailiff is required, which remains at £110. Any publicity about the rises does not seem to have been communicated by, for example, press releases or by loud protests from landlord or agent associations. However, the full changes can be found here: tinyurl/pt8zuom
Posted on: Wed, 09 Apr 2014 18:17:00 +0000
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