Landlord repossessions have increased by 6.8% across England and Wales on average but by up to 2,540% in some local authorities, research suggests.
This surge has been attributed to landlords looking to regain control of their portfolio as the Renters’ Rights Bill looms.
The findings suggest that, as the Renters’ Rights Bill fast approaches, concerns are mounting across the sector, particularly with the proposed abolition of Section 21 “no fault” evictions threatening to make it harder for landlords to protect their investments going forward.
London, which recorded the highest outright number of repossessions at 7,953, has seen a rise of 19.5%, while the West Midlands is up 13.4%. More marginal increases have also been recorded across the North East, East Midlands, North West and Yorkshire and the Humber.
In contrast, just three regions have seen a decline. Wales has recorded the largest fall, down 33.8%, the South East was down 12.3%, and the South West saw a 3.9% decline.
At a local authority level, the most dramatic increases have been seen in Thurrock, where repossessions have climbed by 2,540% over the past 12 months. Basildon has also surged, up 889%, while Castle Point has increased by 183%. Welwyn Hatfield (165%) and Horsham (150%) complete the five largest increases.
Sam Humphreys, head of mergers and acquisitions at agency acquisitions expert Dwelly, said: “The abolition of Section 21 is a cornerstone of the incoming Renters’ Rights Bill, but it risks removing a vital safeguard for landlords and the sharp rise in repossessions is a clear sign that landlords are already acting to protect themselves in advance of these changes.
:It’s important to understand this isn’t about landlords leaving the market, or evicting tenants for the sake of it, but about them seeking to retain control of their assets whilst they can do so via current processes.
“The private rented sector is essential to housing supply and if the Bill makes it harder for landlords to operate, it could backfire by further reducing availability for tenants at a time when demand has never been higher.”
This article is taken from Landlord Today