Landlords scramble to take back properties as Michael Gove prepares to scrap ‘no fault’ evictions
Landlords are scrambling to take back their properties before the Government scraps “no-fault” evictions, new data shows.
Eviction claims by private landlords hit a 23-year high in 2022, according to data from the Ministry of Justice.
Private landlords issued nearly 26,000 possession claims in England and Wales in 2022 – more than in any other year on record since at least 1999. The claims cover both Section 21 claims, so-called “no-fault” evictions, and Section 8 orders, which are handed down by the courts when tenants owe rent.
“No fault” evictions across both the private and social rental were a third higher than before the pandemic last year and the highest number in five years, at 25,000.
The surge came ahead of planned rules that would make it much harder to evict tenants.
Housing secretary Michael Gove published a white paper in June 2022 outlining plans to scrap the Section 21 “no-fault” eviction process to strengthen tenant rights.
Under the plans, landlords will only be able to evict tenants using Section 8, meaning they will have to go through the courts to prove tenant wrongdoing. This should provide tenants with greater protection, but MPs have warned that it will put greater strain on a court system that is already hugely overburdened.
Landlords are worried that the eviction process will become more difficult and protracted. The average wait time to take repossession of a property is already more than five months.
Mr Gove’s white paper promised to improve the court process to avoid a backlog in claims, but there has so far been no funding allocated to do this.
Paul Shamplina, of Landlord Action, said: “We are seeing a massive increase in landlords using Section 21 because they want to sell their properties. They are using Section 21 to evict good tenants who have been paying their rent.”
Landlords are queuing up to sell as mortgage and tax costs rise, making buy-to-let unprofitable for many longtime landlords.
Chris Norris, of the National Residential Landlords Association, a trade body, said: “A lot of landlords are looking at the writing on the wall and saying it just isn’t worth it anymore.”
Wales recorded particularly large jumps in landlord repossessions. 1,446 Section 21 claims were made last year, more than double the number recorded in 2019 and the first time the number has ever exceeded 800.
This surge was likely in response to the Renting Homes (Wales) Act that was introduced at the start of December 2022, the Ministry of Justice said.
This act extended the notice period for Section 21 eviction in Wales from two months to six. The Welsh Government has also committed to exploring rent controls.
Chris Daniel, of Possession Friend, said plans to scrap Section 21 had brought a sense of urgency for landlords who are leaving the sector in response to higher mortgage rates and tax increases.
A government spokesman said: “We recognise that both renters and homeowners are struggling with the cost of living.
“Ensuring a fair deal for renters remains a priority for the government. We will deliver our commitment to abolish section 21 ‘no fault’ evictions as soon as we can in this Parliament – protecting 1.3 million families – and have provided £366 million for local councils to help prevent evictions and provide temporary accommodation.”
