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Possession instructions surge as rental reforms loom

paul shamplina

Possession instructions jumped 60% year-on-year last month at Landlord Action, with enquiries up 75%, the highest spike on record.

The figures suggest landlords are acting ahead of the Renters’ Rights Act, with Section 21 cases still running at nearly three times the level of Section 8, raising questions about how the courts will cope once that volume shifts.

Faced with a lack of flexibility and the prospect of more complex and protracted possession routes, some are feeling pushed into serving notice earlier than they otherwise would as the 1st May deadline approaches, according to founder Paul Shamplina (pictured), bringing forward decisions that are inevitably affecting tenants through no fault of their own.

Faster

Significantly, instructions are increasing at a faster rate than enquiries, he explains. Landlords are no longer just exploring their options, they’re making firm decisions and acting more quickly where previously many had held back.

During the past year, Section 21 has consistently accounted for most of Landlord Action’s possession cases each month, and that dominance has only become more pronounced. In March, Section 21 was used at almost three times the rate of Section 8, with instructions rising by 43% year-on-year in Q1.

Volume

This represents a substantial volume of cases that, once Section 21 is removed, will inevitably be forced through the Section 8 route and into the courts, many of which would not previously have required court intervention, he adds. Even if only a proportion of these cases transition into Section 8 claims, it will place significant additional strain on a court system that is already stretched.

Shamplina believes there is still much confusion about how possession will work in practice, alongside growing concern about compliance, court delays, rent arrears and rising mortgage costs.

“Some landlords are choosing to exit the sector altogether, while others are regaining possession now rather than risk being unable to do so later,” he says. “While possession activity will inevitably slow once these changes come into force, much of the damage will already have been done.”

Tags:

Possession
Landlord action

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