Trade evaluation by Landlord Motion, housing regulation 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 scorching matter throughout the sector. In truth, the Authorities launched their newest plans to enhance rental sector requirements on 16 June through The White Paper – A Fairer Non-public Rented Sector.
One of many main initiatives consists of the abolition of Part 21 evictions, which can present tenants with higher safety and stop landlords from evicting them with out establishing fault on the facet of the tenant.
The newest authorities information exhibits that over the past yr (2021-22), some 12,965 rental properties have been repossessed on behalf of the nation’s landlords.
This marks a 1,487 per cent improve on the earlier yr, however whereas this will likely look like a regarding pattern for tenants, there’s one essential reality to think about.
Throughout the pandemic, tenant evictions have been banned to safeguard these struggling financially between March 2020 and Could 2021. In consequence, solely circumstances the place it was deemed vital have been processed, which means that there have been simply 817 rental properties repossessed throughout 2020-21.
In truth, the 12,965 repossessions seen over the past yr is definitely fifty six per cent fewer than the 29,347 recorded within the pre-pandemic yr of 2019-20.
What’s extra, the extent of rental houses being repossessed on an annual foundation had already been declining steadily yr on yr, down from 35,046 in 2017-18 to 33,113 in 2018-19.
Nevertheless it’s not simply the overall variety of repossessions that’s on the slide. The newest information exhibits that whole 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 business schemes similar to mydeposits, the Property Redress Scheme and Shopper Cash Shield, in addition to Landlord Motion says:
“At first look, it will seem as if the floodgates have opened the place the repossession of rental properties is worried, however this isn’t fairly the case.
Following a yr the place tenant evictions have been banned apart from in sure circumstances, there was all the time going to be a spike in repossessions as a backlog of circumstances lastly began to be processed.
Nonetheless, we’re but to see the extent of rental houses 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.
Whereas delays because of the backlog of circumstances might definitely be one trigger, it’s additionally honest to say that the nation’s landlords have largely acted with empathy and understanding following the pandemic, understanding the issues dealing with many tenants and trying to assist them relatively than turf them out on their ear.”
Paul Sowerbutts, Head of Authorized at Landlord Motion
“At Landlord Motion now we have ready ourselves for the anticipated spike in property repossessions and are busier than ever. While we count on this pattern to proceed into each the third and closing quarters of this yr resulting from the price of residing disaster, we additionally count on repossessions ranges to stay excessive into subsequent yr as effectively.”