16.1 C
Friday, May 17, 2024

LandlordBuyer Reports a Startling Increase in Landlord Possession Actions and Repossessions in Recent Study

LandlordBuyer’s latest research has uncovered an alarming escalation in landlord possession claims and repossessions for the last quarter of 2023, with totals reaching 23,282 claims and 6,649 repossessions.

Comparative data from Q4 2022 to Q4 2023:

  • Landlord possession claims increased from 20,457 to 23,382
  • Orders rose from 16,145 to 18,003
  • Warrants went up from 8,778 to 9,833
  • Repossessions grew from 5,427 to 6,649

Additionally, there was a noticeable uptick in mortgage-related claims and warrants:

  • Mortgage possession claims surged from 3,163 to 4,384
  • Orders climbed from 2,482 to 2,702
  • Warrants increased marginally from 2,131 to 2,200
  • Repossessions by county court bailiffs fell by 19% from 735 to 593.

Jason Harris-Cohen, Managing Director of LandlordBuyer, commented on the rising numbers:

“I don’t think any of the LandlordBuyer team was surprised to see the rate of repossessions, warrants and claims increase. Despite the average UK private rent increasing annually by 9%, landlord costs have risen exponentially, which has created a negative disparity. The most worrying element has been mortgage rates. Landlords coming off fixed-rate, buy-to-let mortgages have found new rates are double what they may have fixed into five years ago.

Refinancing in the buy-to-let sector now means very slim margins to work with and even heightened rents can’t make up the shortfall – especially as insurance policies, maintenance and materials have all risen in cost. It’s a simple case of the rent being received doesn’t always fully cover mortgage repayments.

LandlordBuyers’ research is not in isolation. In February this year, UK Finance figures found there was an 11% rise in repossessions of buy-to-let properties. It also found homeowners in mortgage arrears increased by 7%. Inflation that’s still a way off the Government’s target and stubbornly high fuel bills are squeezing everyone’s budget and for some, the mortgage isn’t always the priority.

Will we see the rate of landlord repossessions continue to rise? Potentially. The industry is still focused on the Renters’ Reform Bill and how landlords may have to adapt. We know the Bill includes the application of a Decent Homes Standard in the private rental sector, and finance may have to be found for improvements.

If Labour win the General Election, it’s thought it would pursue a minimum EPC rating of C for privately let properties. Properties that are currently a D or an E would need substantial investment for them to meet a revised requirement, which is another financial pressure.

If landlords’ only way of raising money for improvements is to remortgage, they will potentially overextend themselves and tread a fine line between profit and loss. It only takes an unexpected turn in the economy for rents to fall, tenant demand to decrease, and mortgage rates to rise. We really need the stars to align to see a fall in repossessions.”

Sam Allcock
Sam Allcockhttps://businesslancashire.co.uk/
Sam Allcock is a highly regarded digital entrepreneur with over 20 years’ experience in online marketing for some of the World’s biggest brands. He has extensive knowledge and experience in SEO and digital marketing. He is based in Cheshire but has an interest in all things going on in the North West and enjoys contributing local news to the site.


The Benefits of Investing in London Property

Investing in London's real estate market offers notable advantages...

Innovative Sustainable Building Practices in the UK

To promote more sustainable living, the construction sector in...

Navigating the London Property Market: How to Buy a Flat

Navigating the property market can seem like quite a...

Body of missing Richard Parker found

Police searching for a missing man from Wrea Green...

Subscribe to our newsletter

Business Lancashire will use the information you provide on this form to be in touch with you and to provide updates and marketing.

Don't miss

Innovative Sustainable Building Practices in the UK

To promote more sustainable living, the construction sector in...

From Bangkok to Beyond: Thailo on the Rise of the Asian Market

The logistics industry in the Asian market has been...

Insight to impact: Free campaign planning event for home and garden marketers

Door4, a digital marketing agency specialising in the homes...

The Story Behind Newspaper Fonts

Newspapers, the lifeblood of information for generations, have evolved...

More News

National Association of Professional Sourcing Agents (NAPSA) Shortlisted for Prestigious Service Provider of the Year Award

The National Association of Professional Sourcing Agents (NAPSA) is delighted to announce its nomination for the prestigious Service Provider of the Year Award at...

incspaces launches all-in-one Virtual Office and Desk Space subscription

incspaces, a leading provider of innovative workspace solutions, is proud to announce the launch of Infinity Office™, the UK’s first all-in-one virtual office and...

incspaces Announces Ambitious Growth Plans Across Europe and the UK with New Hiring Initiative

incspaces, a leading provider of flexible office solutions, is excited to announce its plans for growth across the UK and Europe. As part of...