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Posted on March 3rd 2015 by admin-movingin

More landlords go down the ‘no fault’ route to get possession

Section 21 possession cases were at a 15-year high in 2014, the Ministry of Justice has reported – despite an overall 5% fall in possession claims.

Social landlord possession claims fell by 10,500 in the last year, whilst private landlords seeking hearings before judges fell by 629.

However, accelerated cases rose by nearly 2,000 to 36,026, suggesting that an increasing number of landlords are choosing to go down the “no fault” route.

Paul Shamplina, founder of Landlord Action which specialises in dealing with problem tenants, said: “I’m surprised by the figures for the social housing sector, given the introduction of ‘bedroom tax’, cuts in housing benefit and welfare reforms.

“Perhaps the directive to the social housing sector was to be not as aggressive during this period of transition.”

He said accelerated claims have risen consistently for the last five years, in line with growth in the private rented sector and the drastic housing shortage.

Consistent with Ministry of Justice data, Landlord Action has seen a significant shift in the number of landlords choosing to take the Section 21 accelerated possession route (for a quicker eviction) instead of using Section 8 for possession only.

Paul Shamplina said: “Our research suggests the two most common motives are an increase of landlords wishing to exit the PRS, both to cash in on capital appreciation and because they feel that letting property has become too shrouded in red tape.

“Secondly, landlords are being forced down this route by tenants remaining in properties on instruction by local authorities, who will not rehouse tenants who have ‘voluntarily’ made themselves homeless.”