Amidst the turbulent economic climate of the past six years, more and more people have found themselves falling into rent arrears. According to the BBC, legal action for non-payments was enacted almost 49,000 times in the year 2013-14; a rise of five percent.
The Land and Property Services (LPS) collects more than £1bn in rates annually and an increase in court actions has helped the agency reduce arrears to £162m. The LPS is an arm of the Department of Finance and Personnel that handles all issues pertaining to rates, reliefs and arrears in Northern Ireland. According to the LPS, notification of court action was enough to result in the satisfaction of arrears in 50% of cases, and the rest end up in court.
The Housing Right Service said it was ‘not surprised’ by the figures. The organisation helps those having difficulty with payments.
“We would welcome a review of recovery practice to afford ratepayers more time to repay arrears and avoid costly court action,” said Ursula Toner, one of the agency’s managers.
Low-income earners will have found it harder to afford their rent after the cuts to the welfare bill last year, which saw a scrap of relief payments for almost 40,000 NI residents.
Last year, the LPS also revealed that a growing number of people were approaching them to make special arrangements due to financial difficulties. It reported that the number seeking special payment arrangements was 2,000 in 2009, and had risen to 12,400.
However, the amount of debt written off has also increased by £2m to £31m; a rise that mirrors a still troubled economy, with many companies still facing the possibility of liquidation or administration.