End of year survey

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It can be difficult to grapple with the often confusing housing and property data so it’s very useful to have a summary of this year’s data and so credit to the Digital Property Group for this.

As expected things are not great in any sector, even lettings, due to affordability, margins for landlords and myriad other factors.

Of course thje big news in the residential sector was released this week. anyone involved in mortgages or conveyancing in the last 10 years will know that the excesses were there for all to see and things had got completely out of control. Whilst the proper checks on affordability will dampen down the market for years if not decades to come, this kind of action was long overdue and reflects the need to have some kind of responsible free market economics in the future to ensure social stability and the greater good.

Reality bites, as the saying goes.

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Possession claims – an already skewed system against landlords getting worse ?

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Suggestions that eviction of residential tenants becoming even more frustrating and difficult

Any Landlord that has faced the incredibly frustrating scenario of a tenant being in breach of his, her or their tenancy agreement and having to seek a possession order from the court will probably already know that the law in this area is often exploited by tenants.

Among many tactics commonly used by tenants who are significantly in arrears with rent is to file a defence just before a hearing, claiming ignorance. The defence is commonly based on alleged disrepair by the Landlord, which then often results in evidence being needed to prove or disprove that allegation which can set the whole case back by months.

Even where a landlord applies under the accelerated possession procedure based on expiry of the agreed fixed term, this can still take months and many tenants stop paying rent during this period and wait for the bailiffs to evict them even after a court order has been made.

In a press release this week, Helphand claims to have undertaken research which suggests that the frustration for Landlords is only increasing in that tenants are playing games more than ever, taking advantage of every possible ploy and external factor available. In particular, the release suggest that :-

  • More cases, some 13% more, are being appealed by tenants this year.
  • There is a perception that judges are more reluctant to make possession orders in the current economic climate.
  •  Court closures are slowing down an already slow system.
  • All of the above factors are against the backdrop of an increase in possession claims which are up more than 10% creating further pressure on the system.

If Helphand are right, this would make what is in our view a skewed system in favour of tenants even more outrageous. That being said, landlords need to be wise to the possibility of the worst happening and to plan accordingly. Vet tenants very carefully, insist on high deposits, consider rent insurance options, insist on personal guarantees from relatives who you have also checked out financially and get good legal representation, these are all key safeguards for landlords.

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