October 4, 2022

1,487 per cent enhance in rental property repossessions

Business evaluation by Landlord Motion, housing legislation specialist and a part of the Hamilton Fraser Group, has revealed that the variety of rental property repossessions carried out on behalf of landlords throughout England and Wales has elevated by one thousand 4 hundred and eighty seven per cent yearly, following the tip of the tenant eviction ban carried out to guard the nation’s renters in the course of the pandemic. 

Tenant evictions and their wider welfare throughout the rental market have lengthy been a sizzling subject throughout the sector. In truth, the Authorities launched their newest plans to enhance rental sector requirements on 16 June by way of The White Paper – A Fairer Non-public Rented Sector.

One of many main initiatives consists of the abolition of Part 21 evictions, which is able to present tenants with larger safety and forestall landlords from evicting them with out establishing fault on the aspect of the tenant. 

The newest authorities knowledge exhibits that during the last 12 months (2021-22), some 12,965 rental properties had been repossessed on behalf of the nation’s landlords.

This marks a 1,487 per cent enhance on the earlier 12 months, however whereas this will look like a regarding pattern for tenants, there’s one essential reality to contemplate. 

In the course of the pandemic, tenant evictions had been banned to safeguard these struggling financially between March 2020 and Might 2021. Because of this, solely circumstances the place it was deemed vital had been processed, which means that there have been simply 817 rental properties repossessed throughout 2020-21.

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In truth, the 12,965 repossessions seen during the last 12 months is definitely fifty six per cent fewer than the 29,347 recorded within the pre-pandemic 12 months of 2019-20. 

What’s extra, the extent of rental properties being repossessed on an annual foundation had already been declining steadily 12 months on 12 months, down from 35,046 in 2017-18 to 33,113 in 2018-19. 

But it surely’s not simply the full variety of repossessions that’s on the slide. The newest knowledge exhibits that complete repossessions account for simply twenty six per cent of all preliminary claims made by landlords. 

Whereas this was far decrease for apparent causes throughout 20-21 at simply 4 per cent, it’s a decrease proportion than 2019-20 (28 per cent), 2018-19 (28 per cent) and 2017-18 (27 per cent).   

Eddie Hooker, CEO of the Hamilton Fraser Group, who function trade schemes reminiscent of mydeposits, the Property Redress Scheme and Shopper Cash Defend, in addition to Landlord Motion says:

“At first look, it could seem as if the floodgates have opened the place the repossession of rental properties is anxious, however this isn’t fairly the case. 

Following a 12 months the place tenant evictions had been banned apart from in sure circumstances, there was at all times going to be a spike in repossessions as a backlog of circumstances lastly began to be processed. 

Nevertheless, we’re but to see the extent of rental properties being repossessed return to pre-pandemic ranges and there are additionally a decrease proportion of preliminary claims making it to this closing, final resort stage. 

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Whereas delays because of the backlog of circumstances could actually be one trigger, it’s additionally truthful to say that the nation’s landlords have largely acted with empathy and understanding following the pandemic, understanding the issues going through many tenants and trying to assist them reasonably than turf them out on their ear.”

Paul Sowerbutts, Head of Authorized at Landlord Motion

“At Landlord Motion we’ve got ready ourselves for the anticipated spike in property repossessions and are busier than ever. While we anticipate this pattern to proceed into each the third and closing quarters of this 12 months on account of the price of dwelling disaster, we additionally anticipate repossessions ranges to stay excessive into subsequent 12 months as effectively.”