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London landlords losing over £20,000 per possession case

Will Eastman

The average possession case with continual rent arrears cost London-based landlords £22,968 in unpaid rent this year, as the financial impact of court delays continues to bite.

New data from property law specialists Legal for Lettings reveals that the capital’s investors are being hit hardest, driven by having the highest average rents in the country (£2,197) along with the longest court delays. The UK-wide average loss sits at £8,700.

The data also highlights a significant inconsistency in court delays across the country, making it unpredictable and difficult for landlords and lettings professionals to plan confidently, according to the firm.

Delay

The Central London, Willesden, Edmonton, Clerkenwell & Shoreditch county courts saw the longest average delay at 11 months, while others such as Teesside, Leeds, Brighton and Sheffield followed with average court delays of eight months. Across the UK, the average wait for a possession case to be concluded now stands at five months.

Will Eastman, director of Legal for Lettings (pictured), says its findings illustrate the importance of court reform, with the abolition of Section 21 evictions now less than five months away. “These delays are already placing huge pressure on landlords, particularly in the regions where courts are most backlogged,” says Eastman.

System

“Every extra month a case spends in the system is another month of rent that may never be recovered. Without meaningful court reform, the Renters’ Rights Act risks driving these numbers even higher.

“We are already seeing more landlords relying on Section 21 while it is still available, which is likely to translate into further increases in possession claims and evictions, with knock-on financial and emotional impacts across the sector.”

Tags:

Possession claims
Courts and tribunals service

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