SURGE IN REPOSSESSIONS

In the last 12 months, we have issued more Section 21’s than we have probably in the previous 5 years!

 

The Ministry of Justice recently released data saying in the first three months of 2024, there were nearly 25,000 cases currently going through the courts, which was up by 6% on the first three months of 2023.

 

Of course, we must remember, this data is only on those that are going through the court system, therefore the figure will be considerably higher as many tenants will vacate at the given time, meaning the landlord has no need to go through the courts.

 

I am also mindful, that the current 25,000 cases, was a decision made by the landlord most probably in the summer of 2023, as the courts process the backlog.  As I said in my opening paragraph, we have issued more Section 21’s than ever before, and the main reasons for these have been due to the landlord either selling the property or moving back in. Only a very, very small percentage of these are due to the tenant being in rent arrears or other reason.

 

The main reason for tenants not moving out at the end of their notice period, is due to the increase in rental prices over the last 12-18 months (which has been fuelled mainly by the increase in mortgage rates) and the tenant not being able to find suitable accommodation in the open market.

 

With Labour now being the newly elected party, it will be interesting to see how the landscape of the property sector for both sales and lettings will change.

 

Sharon

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