Landlord repossessions across England and Wales have risen sharply in the past year with some areas recording increases of more than 2,500% as investors seek to secure control of their portfolios ahead of the government’s Renters’ Rights Bill.
Analysis by Dwelly, the lettings acquisition and planning consultancy, shows repossessions increased by 6.8% nationally compared with the previous 12 months.
The East of England saw the steepest regional rise at 22.8%, while London – which recorded the highest number of cases at 7,953 – was up 19.5%. The West Midlands also posted a double-digit increase of 13.4%.
By contrast, repossessions fell in three regions: Wales (-33.8%), the South East (-12.3%) and the South West (-3.9%).
REPOSSESSIONS RISING
At local authority level, Thurrock experienced the most dramatic escalation, with repossessions rising by 2,540 per cent year-on-year. Basildon was up 889% and Castle Point by 183 per cent, with Welwyn Hatfield (165%) and Horsham (150%) also registering sharp increases.
The government’s Renters’ Rights Bill, which will abolish Section 21 “no fault” evictions, is a particular concern for landlords who argue the change could make it harder to regain possession of their properties.
Dwelly suggests the surge in repossessions reflects landlords acting in advance of the legislation rather than exiting the market.
COULD BACKFIRE
Sam Humphreys, Head of M&A at Dwelly, says: “The abolition of Section 21 is a cornerstone of the incoming Renters’ Rights Bill but it risks removing a vital safeguard for landlords and the sharp rise in repossessions is a clear sign that landlords are already acting to protect themselves in advance of these changes.
“It’s important to understand this isn’t about landlords leaving the market, or evicting tenants for the sake of it, but about them seeking to retain control of their assets whilst they can do so via current processes.
“The private rented sector is essential to housing supply and if the Bill makes it harder for landlords to operate, it could backfire by further reducing availability for tenants at a time when demand has never been higher.”
