Landlords move to regain possession before Renters’ Rights Act changes

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Landlords stepped up possession activity in March as the 1 May implementation of the Renters’ Rights Act approached, according to new figures from Landlord Action.

The firm said possession instructions rose by 60% year-on-year in March, while enquiries increased by 75%, making it the sharpest monthly rise it has recorded.

Landlord Action said the increase suggests landlords are acting before the new rules take effect, with some bringing forward decisions while existing possession routes remain open to them.

The figures also point to a wider trend rather than a one-off jump. Over the first quarter as a whole, possession instructions were up 32% on the same period last year, while enquiries rose by 23%.

That gap indicates landlords are moving beyond seeking advice and are increasingly taking formal steps to recover possession, where previously some may have delayed action.

Landlord Action said the data also underlines the sector’s continued dependence on Section 21. Over the past 12 months, Section 21 has made up the majority of the firm’s possession cases each month, and in March it was used at almost three times the rate of Section 8.

In the first quarter, Section 21 instructions were up 43% year-on-year.

The business said this raises questions over the volume of cases that could move into the Section 8 route and through the courts once Section 21 is removed. It argued that many of those cases would not previously have needed court involvement.

Landlord Action said that, even if only part of that caseload shifts into Section 8 claims, it is likely to add pressure to a court system that is already under strain.

It said the result will be that a process that has largely been administrative becomes more dependent on court action, with longer timelines and more uncertainty for both landlords and tenants.

Paul Shamplina, founder of Landlord Action, said: “This is exactly what we said would happen. As Section 21 is phased out, landlords are acting now while they still have certainty, because many are not confident in what replaces it.

“From the conversations I have been having with landlords across the country, there is still a great deal of confusion about how possession will work in practice, alongside growing concern about compliance, court delays, rent arrears and rising mortgage costs.

“That combination is pushing landlords into making decisions earlier than they otherwise would.

“Some landlords are choosing to exit the sector altogether, while others are regaining possession now rather than risk being unable to do so later.

“While possession activity will inevitably slow once these changes come into force, much of the damage will already have been done.

“Good landlords leaving the market and tenants losing homes in circumstances where, previously, no action would have been taken.”

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