Recent data from the Ministry of Justice indicates a significant increase in Section 21 evictions, with 32,287 accelerated possession claims filed in 2024, a 7% rise from 30,230 in 2023. Additionally, bailiff-led evictions under Section 21 reached 2,947 between October and December 2024, marking a 10% increase from the same period in 2023.
The impending Renters' Rights Bill, currently under parliamentary review, aims to abolish Section 21 evictions. This legislative shift has prompted many landlords to reassess their positions, with a notable number choosing to exit the rental market. Factors influencing this decision include rising mortgage rates, increased tenant arrears, and recent tax reforms. A survey revealed that 32% of landlords are considering selling their properties in 2024.
Megan Langley, Solicitor at Blackhurst Budd, commented on the trend, stating, "The increase in Section 21 claims is largely due to landlords seeking to regain possession of their properties before legislative changes take effect. With the uncertainty surrounding the Renters' Rights Bill, many landlords feel compelled to act pre-emptively to secure their financial interests."
Furthermore, Langley highlighted the legal complexities involved, adding, "The legal process for landlords regaining possession can be challenging, particularly given the current backlog in court proceedings. Landlords considering eviction should ensure they fully comply with all legal requirements, including providing proper notice and adhering to deposit protection rules, to avoid potential disputes or delays."
The culmination of these factors has led to a surge in Section 21 claims, as landlords move to regain possession before potential legislative changes take effect. The court system is experiencing increased pressure, leading to extended waiting periods for eviction proceedings. This situation underscores the need for timely legislative action to provide clarity and stability for both landlords and tenants.
In the interim, the rental market is witnessing a shift, with institutional investors increasing their presence. The build-to-rent sector is expanding, aiming to offer quality rental options with enhanced security of tenure. However, concerns remain regarding the affordability of these units for the average tenant.
As the Renters' Rights Bill progresses through Parliament, its outcomes will be pivotal in shaping the future dynamics of the UK's rental market. Stakeholders across the sector are closely monitoring developments, anticipating reforms that balance the interests of landlords and tenants alike.
For advice on eviction matters please contact Megan on 01253 629300.