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The Guardian - UK
The Guardian - UK
Business
Michael Goodier

No-fault eviction proceedings hit highest level for six years in England

Letting agent signs outside houses in London
At present it is legal under section 21 of the Housing Act 1988 for landlords in England to ask tenants to leave with two months’ notice without having to establish a reason why. Photograph: Yui Mok/PA

Court proceedings for no-fault evictions in England have reached their highest level in six years, ahead of new legislation being passed to ban the practice.

Figures released by the Ministry of Justice on Thursday show that 7,491 no-fault eviction claims were brought before the courts between April and June.

That is the highest recorded number since 2017, up 10% on January to March, and 35% higher than in the same period last year.

There were 2,228 no-fault evictions carried out in the same period involving bailiffs, up 41% year on year but almost flat compared with the first quarter of 2023.

Campaigners said the figures demonstrated why the renters reform bill to ban no-fault evictions, now going through parliament, was essential. At present it is legal under section 21 of the Housing Act 1988 for landlords in England to ask tenants to leave with two months’ notice without having to establish a reason why, a measure that has had a chilling effect on tenants’ confidence to challenge defects.

Polly Neate, the chief executive of the housing charity Shelter, said: “Landlords can too easily use and abuse the current system. Some will hike up the rent and if their tenants can’t pay, they will slap them with a no-fault eviction notice and find others who can. We speak to renters all the time who feel like they have zero control over their own lives because the threat of eviction is constantly hanging over them.”

She added: “The moment parliament resumes, the government must get rid of no-fault evictions, which have made the prospect of a stable home little more than a fantasy for England’s 11 million private renters.”

Dan Wilson Craw, the deputy chief executive of the campaign group Generation Rent, said: “Renters are bearing the brunt of the cost of living crisis, with record numbers being evicted for rent arrears and increasing numbers being evicted so landlords can sell up or raise the rent. And it’s incredibly hard to find a new place to live with rents so high, which is forcing many out of their home town or to seek homeless support from their council.

“We need better protections for tenants whose landlord is selling, benefit support that is linked to actual rents, and building of more homes, particularly social homes, to bring down rents.”

The Conservative party promised to ban no-fault evictions in its 2019 election manifesto, but progress has been slow. The renters reform bill had its first reading in May, and no date has yet been set for the second reading, which could take place in September at the earliest after parliament returns from recess.

Further delays would risk the government running out of time to pass the bill this parliament, meaning it could be years until the no-fault eviction ban comes into force. Labour has also said it wants to end section 21 notices, raising hopes the measure will eventually pass regardless of who wins the next general election.

In the meantime, tenants are still being evicted. Since the 2019 election, 54,724 section 21 claims have been made in county courts. Many more will have been issued the notices by their landlords but left the property before it ever reached court.

The National Residential Landlords Association (NRLA) said one reason for the rise in tenant evictions was a rise in landlords selling up.

Chris Norris, the NRLA policy director, said: “Tax changes designed to dampen the supply of homes to rent, coupled with ever-growing costs and uncertainty over planned reforms is pushing many simply to leave the market. In many instances they are forced to take back possession of their properties.

“The best way to prevent repossessions is to ensure landlords have confidence to stay in the market. That is why the government needs to rethink its tax hikes on the sector and ensure that its renters reform bill has the confidence of responsible landlords every bit as much as tenants.”

Separate figures released by UK Finance on Thursday show the number of buy-to-let mortgages in arrears rose by 28% in the three months ending June, while the number of homeowner mortgages in arrears was up by only 7%.

Four hundred and forty buy-to-let mortgaged properties were taken into possession – up 7% on the previous quarter but still lower than the pre-pandemic trend.

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