Landlord repossessions are increasing, data released last month shows. In Q3 of 2019, 800k landlords had their properties repossessed, which is up 40% from Q3 of 2018, a huge increase. The amount of severe mortgage arrears have risen in that timeframe by 9%, although the sum of all arrears are slightly lower.
Experts have explained that this rise is due to a high number of historic cases that have been cleared recently, but landlords don’t believe that.
The experts claim that this spike has been kickstarted by a change in how cases are reviewed, with many lenders now issuing repossession orders once all of the other options have been tried.
Landlords however blame changes to mortgage interest tax relief, and a change in how long it takes for landlords to start the eviction process when a tenant is in arrears.
David Smith, policy director for the Residential Landlords Association, said: “The courts are failing both landlords and tenants.
“A systematic programme of court closures, coupled with cuts to court budgets have made it harder for anyone in the private rented sector to get justice in a timely way where something goes wrong.
“With all parties wanting to develop longer tenancies in the rental market, this will only work if landlords can swiftly and easily repossess properties through the court in legitimate circumstances.
“A failure to achieve this will make such tenancies a pipe dream.
“We are calling on all parties in the election to pledge to establish a dedicated housing court that can bring rapid justice for landlords and tenants.”
“Since most repossessions of this kind lead to tenants being evicted, it is vital that the next government actively supports the majority of landlords doing a good job to provide homes to rent that the country needs.”
“If we want to develop long-term tenancy models, we also need to support landlords to stay in the market long term.”
Landlord confidence has taken a huge hit. More and more landlords are assessing their options and the amount of people joining the field is decreasing steadily, causing the buy to let sector to be on its knees. A RLA research study conducted recently found that a third of the 2,000 landlords in the survey were planning to sell over the 12 months.
People renting out second homes altogether are thinking of selling up, namely due to the tax changes inflicted by the government. Next year, Capital Gains tax is changing, and people are jumping ship en masse. Are you one of them?
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