Repossession claims down since lifting of ban?Make Text Bigger
Warnings of a surge of evictions following the partial lifting of the repossessions ban in September last year have proved to be unfounded according to government figures released today.
Data published by the Ministry of Justice shows that in the fourth quarter of 2020, the number of claims made by private landlords in England and Wales to repossess properties fell by 37% compared to the same period in 2019. This is despite the courts beginning to hear possession cases again following a six-month stay on proceedings in response to the COVID-19 pandemic.
The number of possession claims made under the accelerated procedure, used by both private and social landlords, also fell by just under 43% in the fourth quarter of 2020 compared to the same period in 2019.
Overall, across the whole of 2020, the number of claims by private landlords to repossess properties fell by 48%, with the number of claims made under the accelerated procedure fell by just over 52%.
Whilst the figures for the last quarter show that landlords have prioritised sustaining tenancies during the pandemic, the National Residential Landlords Association is warning that the scale of the rent debt crisis now engulfing the sector means that without further government support, landlords cannot continue that support indefinitely.
Research for the NRLA indicates that over 800,000 renters in England and Wales have built arrears since lockdown measures started in March last year.
The NRLA is calling for a package of hardship loans and grants for affected tenants to pay off arrears built since March last year, ensuring tenancies are sustained and preventing many renters facing the consequences of damaged credit scores.
Ben Beadle, Chief Executive of the National Residential Landlords Association, said:
“Today’s figures show that despite fears to the contrary, landlords have prioritised sustaining tenancies and supporting renters during the pandemic.
“That said, landlords cannot continue indefinitely going without receiving rent. Bans on repossessions are only leading to tenants accumulating more and more debt which will become impossible for them to pay back. This will eventually lead to many more losing their homes.
“Ministers can still avert this if they step in to help the sector through a package of hardship loans and grants.”
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