Visits to Money Advice and Budgeting Service (MABS) rise due to the lifting of eviction ban

IN the first three weeks following the lifting of the eviction ban on March 31, South Munster Money Advice and Budgeting Service (MABS) have received a noticeable rise in visits and calls from the public who are worried about their living situations. This is an emerging issue which is compounding broader issues around rising costs which we have been dealing with in the past few years.

The temporary moratorium which prevented no fault evections was introduced in 2022 to protect rental tenants during the current economic crisis. The phased lifting of the ban puts thousands of renters at risk of potential evictions. We had already been working with a high volume of people seeking support due to rising costs. The impact of the lifting of the ban has already resulted in a large number of eviction notices being issued, and we are already working many of these. A number of people are contacting us worried about receiving potential eviction notices. This is a cause for further financial concern for the Irish public, who are already coping with energy prices remaining high, despite wholesale prices coming down.

Significantly, within these numbers, we have noticed a significant increase in clients in the over 65 category and up, and our teams are also seeing an increase in people who are currently renting and concerned about the implications of the ban on them, in an already stressful economic climate.

The increase in calls from the over 65’s could potentially be as a residual impact of the recession of 2008 and the lack of permanent solutions to mortgage debt being provided to customers in arrears. 

Alongside this, the sale of non-performing mortgages by the original lender to non banks are playing an increasingly prominent and worrying role in the current housing crisis. Non-banking entities held 74 per cent of all domestic mortgage accounts in arrears for more than one year in September 2022.

Here at MABS, we want to reassure people that there are steps in place to support those affected, and that MABS, alongside other support facilities, are there to help those who are worried. The government has put some measures into place to help, such as the “purchase with tenant in situ” scheme to those eligible, either via private or social housing, but we do urge tenants facing challenges to contact us, and as always, sooner rather than later.

For housing specific issues, we would direct you to our fantastic colleagues at Threshold or your Local Authority or Rental Tenancy’s Board, however, generally, when people come to us worried about paying their rent, or in arrears, they are already facing financial strain elsewhere. We take a holistic view of the overall finances, as the problem is rarely specific to just the rent.

In recent years, it has been the combination of rising rent and mortgage interest rates, combined with a continued rise in energy costs for households, who are also dealing with an overall increase in the cost of living that are driving clients to financial worry. The rising energy costs have been ongoing for several years now, and despite the wholesale energy costs going down recently, consumers are yet to see these savings in their bills. We have direct contact with energy providers in Ireland, and we can negotiate with them to prevent disconnection, and to come to a repayment arrangement that suits you.

We can also support people by helping them with a financial health check, and to create a whole picture budget plan, considering priority debts and costs, and secondary “nice to have” payments, and outlining which debts should be paid first.

Not only will a budget help you get on top of your current spending, but it may also allow you to put a little away to help with an unexpected bill. We have loads of content on our website, www.mabs.ie,to help you do this, but we are also here to assist in person, if you prefer.

The most important thing we want people to know is that we are here to help, and completely free and confidential. Financial stress can have huge implications on your overall wellbeing, and we want the public to know that there is support for you. We have been helping people for over 30 years and will continue to do so.

For more information about money management, mortgage arrears and tackling debt, contact MABS for free, confidential, and independent advice at any point along the way. We are available in person at any of our locations in Cork, or on the phone.

Cork MABS (North), Mallow. Located at 25 O’Brien Street, Mallow, P51 WF90 0818 07 2440 mallow@mabs.ie

Cork MABS (West), Dunmanway. Located at Unit 11, Underhill Commercial Park, Dunmanway, P47 XD71 0818 07 2450 dunmanway@mabs.ie

Cork MABS, Charleville. Located at Rathgoggin South, Charleville, P56 PP93 0818 07 2420 charleville@mabs.ie

Cork MABS, Cork City. Located at Ground Floor, 101 North Main Street, Cork, T12 AKA6 0818 07 2090 cork@mabs.ie