Landlord Exodus Following Rent Reforms

A landlord exodus triggered by rent reforms for private tenants has seen court action to take back homes surge by more than 200 per cent.

The Ministry of Justice has published data suggesting that landlords are switching to short-term lets or selling buy-to-let homes due to changes in favour of tenants introduced by the Renting Homes (Reform) Act, which occurred in December in Wales.

More changes under the act are on the way in June.

The MoJ figures show that actions in Wales under accelerated procedures soared compared with 12 months ago - by 236 per cent for claims, 249 per cent for orders and 275 per cent for warrants.

The number of accelerated procedures also increased in England, but only by 16 per cent for claims, 46 per cent for orders and 95 per cent for warrants.

Evictions climbing to pre-Covid levels

Despite the massive volume increase, civil courts manage the workload with average waiting times falling from 27.3 weeks to 22.3 weeks.

The MoJ report points out that landlord eviction action is still lower than pre-Covid levels.

The reforms in Wales included:

• Changing tenants to 'contract holders' and requiring all landlords to give a copy of the contract (rent agreement) to renters
• Increasing the no-fault eviction notice for new tenants from two to six months, and current tenants will come under the same notice from June 1. New tenants cannot be evicted during the first 12 months of their contract.
• Increased obligations for landlords to rent homes with better standards, including fitting smoke detectors and carbon monoxide alarms and carrying out regular gas and electric safety checks.
• Banning retaliatory evictions if tenants complain about their homes

The report states: "The changes in regulations and rising interest rates with the corresponding increases in mortgages would have contributed to uncertainty for landlords in the short term and has very likely led to some landlords selling their properties and exiting the rental market."

Thousands evicted in London

Despite the significant increases in court action in Wales, London saw the largest concentration of court applications from landlords.

In the first three months of this year, courts in the capital dealt with 6,738 landlord claims and 4,781 orders - comprising around 28 per cent of all claims and orders. Judges issued 3,333 warrants in London, a third of the national total and a 105 per cent increase in a year.

Outside London, Harlow in Essex had the highest rate for landlord claims at 429 per 100,000 privately rented homes, where buy-to-let landlords own 40 per cent of the homes. The figures equate to 25 evictions in the first quarter of 2023.

Two more Essex councils were close behind Harlow - Basildon (44 evictions/405 per 100,000 privately rented homes) and Barking & Dagenham (72 evictions/ 402 per 100,000 privately rented homes). In the quarter, Barking had the most evictions in England and Wales by private landlords.

Buy to let repossession FAQ

What is an accelerated claim?

Accelerated possession claims aim to allow landlords to win a repossession order without a hearing if the tenant does not dispute the facts of the case. This is often called a Section 21 or no-fault eviction notice.

Can landlords claim rent arrears under an accelerated claim?

Landlords cannot seek repayment of rent arrears under an accelerated claim.

What happens when a judge makes an accelerated possession order?

The tenant has up to 28 days to leave the home. Bailiffs can evict tenants who fail to go within this time limit.

Where can I find out more about accelerated claims?

The MoJ report for more information and forms

Are no-fault evictions still legal?

The government intends to abolish Section 21 no-fault evictions when the Renter's Reform Bill passing through Parliament becomes law.