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So why are Landlord and Tenant possession claims at an all-time high?

By Brad Askew on 20/10/2014 with comments

This being my first BLOG for the Tenancy Agreement Service, as Founder of Landlord Action since 1999, we have dealt with over 30,000 instructions for Landlord, Letting Agents, Housing Associations and Insurance Companies.

This week’s blog analyses the  possession claim figures released by the government via HM Courts and Tribunals and Possession Claims On line, for last year of 2013 there were a total of 170,451 claims issued in the courts in England and Wales.

This is broken down by 113,175 claims issued by social landlords, 23,196 standard claims issued by Private Landlords with hearing dates IE Section 8 cases, this being the highest amount since 1999.

Accelerated Section 21 possession claims issued were 34,080 being an all-time high, in comparison to 13,891 issued in 1999.  It is believed by Shelter that 90% of accelerated claims are taken out by private Landlords, 10% social landlords.

So why are Landlord and Tenant possession claims at an all-time high?

Growing Market

With a Private Rental Sector at 17.5% and predicted to rise to 22 by 2020, with an ever growing population of people living on this country with over 220,000 people coming to live in our country last year, more rented property is required. Tenants still unable to save for deposits, even with Help to Buy scheme, Banks making lending more available for investors, and a lot of investors happy with 4-5% yields for their monies, rather than leaving their savings in a bank, along with a rising Housing Market, Investors are seeing that residential Buy to Let offers good medium to long terms investments.

Tenants not paying, or need to be re-housed

With high cost of living, wages stagnated, landlords wanting high rents, unemployment,  tenant struggling to manage debt, cuts in housing benefit, Tenants staying in a property, because they wish to be housed by the council, Landlords wanting to exit the LHA market. Landlords wishing to sell the property, as the market has risen, are just some of the reasons why possession claims rose last year.

From the turn of this year we have never seen so many instructions relating to Section 21 Accelerated Claims and I believe 2014 will see an all-time high in those procedure, my prediction nearer 40,000 this year.  The reasons why Landlords are issuing S21 Accelerated, is they are being forced to, as there tenants are being told to stay put, as they need a court order to be re-housed, so the councils are pushing the problems on to the Landlords.  Also a lot of landlords having seen a rise in the value of the property in the last 10 months, so have decided to sell and need possession, or that the need to move back into the property, or that they need to evict the tenant, because they feel they can achieve more rent.

By Paul Shamplina,   Founder of Landlord Action.  He is also on the Advisory Council for The Property Redress Scheme and advising the Government on Speeding Up The Eviction Process, as part of the Tenants Charter.