Research carried out by Simple Landlords Insurance found that Ministry of Justice figures reveal over half of repossessions in the first quarter of 2016 were in social housing sector (57 per cent), while just 15 per cent of claims took place in privately rented homes – the private rented sector (PRS).
Generally, it is always thought by the public that social housing is the stable option, whereas the implication created by some in the media is that privately rented housing is overpriced, poor value and, crucially for tenants, an unstable option. These figures prove this is a misconception.
The balance of possession claims were accelerated possessions at 28 per cent , these being a mixture of social and private claims.
So, the majority of claims which resulted in county court repossessions were from social housing (44 per cent), with 42 per cent accelerated and only 14 per cent private.
According to Simple Landlords Insurance the proportion of repossessions in social housing has fallen – from 83 per cent in 1999, to 62 per cent last year – while private repossessions only increased marginally (from 9 per cent to 13 per cent in the same period) a clear reflection of how the housing landscape has transformed.
The PRS has now overtaken social housing in its size and scope and now accounts for 19 per cent of households – a massive 5 million – against social housing’s 17 per cent.
With more people renting than ever before, the English Housing Survey found that 78 per cent of tenants reported their last tenancy ended because they wanted to move. Other research has shown that the majority of private renters prefer shorter tenancies which give them the flexibility to leave if they want to. Generally, private landlords encourage tenants to stay as long as possible.
Only 1 per cent of tenants said their landlord terminated their last tenancy – with half (51 per cent) saying their tenancy continued after the end of the fixed term and a third (33 per cent) reporting their landlord renewed their tenancy once it had ended, according to figures from the National Landlords Association.
The data suggests that private renting is nowhere near as insecure as generally thought, and adds weight to the argument that long-term tenancies benefit landlord and tenant alike.
Evictions in Social Housing outnumber the PRS https://t.co/qwijXxxLOd
— LandlordZONE (@LandlordZONE) October 10, 2016