As a result of pandemic and Government policy, landlord possession actions have dropped significantly. Compared to the same quarter in 2019, landlord possession claims fell by 67%, followed by orders for possession (89%), warrants (86%) and repossessions (93%). This fall is despite the fact that courts have begun to hear possession cases again, following a six-month stay on proceedings imposed earlier in 2020.
The group making up the largest proportion of possession claims were private landlords (43% or 3,619), followed by social landlords (27% or 2,268). Just under a third were accelerated claims (30% or 2,495).
Landlords are facing very lengthy court action, with the MoJ figures showing that the median average time from claim to repossession has more than doubled, with an increase to 43.0 weeks, up from 21.0 weeks in the same period in 2019.
Paul Oxley, Managing Director of Decorus for Sage comments: “Landlords are facing increasing rent arrears, with the latest NRLA figures indicating that over 800,000 tenants in England and Wales have built arrears since lockdown measures started in March 2020.
“Many tenants have found themselves in financial hardship as a result of job losses and redundancy and this places landlords in a very difficult position. Mounting arrears can put a severe financial strain on a landlord’s cash flow, so if they are faced with a tenant that has stopped paying the rent, they should immediately open up communications to ensure they have a good understanding of the tenants’ financial circumstances.
“Legal action is the last resort and only should only be considered when all the other options have been discounted. If there are no alternatives to court proceedings, it is vital that landlords follow the correct procedures to secure a court order to evict a tenant from their home. Damages for unlawful eviction of a tenant can be several thousands of pounds and the legal process alone will cost a minimum of £800.
“If arrears do start to build, it can be caused by a breakdown in communication and a failure to address concerns. If landlords are apathetic to issues such as necessary repairs, tenants may respond similarly by ignoring their payments.”
