Increase in the amount of arrears of rent before a Statutory Demand can be served by a landlord against an individual

From 1 October 2015 landlords can only serve a Statutory Demand against tenants who are individuals for arrears of rent if the amount owed is at least £5,000. The old limit of £750 remains for tenants who are companies. The intention is to discourage creditors from making debtors bankrupt for small sums.

Often simply serving the Statutory Demand which then threatens insolvency proceedings, can be sufficient to persuade a tenant to pay the appears. However, if there is any dispute about the amount of the debt, for example if a tenant is alleging disrepair, then the landlord should consider other remedies. Otherwise the landlord could end up being liable for significant costs.

If you wish to discuss any of the issues raised in this article please contact Joanna Osborne or any member of the Edwin Coe Property Litigation team.

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