Rent to Rent Tips, Advice and Case Study

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We first published this article back in 2013. It has been resurrected because the information provided within it is just as relevant today as it was back then and the Rent to Rent strategy continues to be a hot topic of discussion at many of the UK’s property networking Events.

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Courts now take 22.5 weeks for possession claims

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New statistics show that it now takes private landlords an average of 22.5 weeks from making a claim to the courts for a property to be repossessed to it actually happening – up from 21.6 weeks since the beginning of the year.

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Higher SDLT refund via selling property to limited company?

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My hubby and I were unable to sell our residential property A before buying new main residential home B in Aug 2017, so we paid an extra £25k in stamp duty because of the second home tax surcharge of 3%.

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Courts failing ahead of radical repossession changes

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Repossessions:

With the imminent demise of the no-fault Section 21 eviction
process, landlords are concerned about what will take its place.

Government has announced that it is committed to stopping
landlords using the no-fault process to regain possession of rented properties,
but the court repossession statistics for the first quarter of 2019, released
this week, present a worrying trend.

The new figures show that it takes private landlords, on average,
22.5 weeks from making a claim to actually getting possession. This compares to
the 21.6 weeks figure for Q1, 2019.

The Ministry of Housing, Communities & Local Government is
currently conducting a consultation about how best to replace Section 21s with
something that’s “fair for tenants and landlords�.

Have your say, contribute here – A new deal for renting: resetting the balance of rights and responsibilities between landlords and tenants

Despite claims from landlords’ representatives that the only
way to make the system fair is to introduce specialised “Housing Courts�, where
swift and fair justice can be settled, the government seems intent on merely “tweaking�
existing legislation and court processes. Few landlords have faith that such a
move will make a major difference, or that it will be anywhere near enough to
prevent “landlord flight�.

Admittedly, not all evictions take 22.5 weeks, and as has
been suggested in the consolation, by eliminating mistakes on claim forms,
digitising the process, and introducing clearer grounds for possession, average
times may well be reduced significantly.

But there’s no getting away from the fact that by removing
the assured shorthold tenancy and Section 21, leaving only a modified Section 8
process, this system moves from a mandatory eviction (when certain conditions
apply and no court hearing is required) to a discretionary and adversarial one.

That means that in each case the onus of proof will be on
the landlord: to bring into court rock-solid evidence that a significant breach
of contract or misdemeanour has occurred, or has been occurring over a period
of time. That process is not only difficult, time consuming and expensive, calling
for professional representation, the outcome is always uncertain because judges
will often be swayed and sympathetic to arguments put forward by the most “vulnerable�
party, invariably the tenant.

Whatever the arguments, it would seem the die is cast as far as the removal of Section 21 is concerned, and there will be significant changes to the tenancy laws in both England and Wales following broadly the model introduced in Scotland in 2017. What is put in its place is perhaps of greatest concern now, and that whatever it is it does not tilt the scales of justice too far.

A press release put out by the Residential Landlords
Association (RLA) draws attention to the new repossession statistics and the
wider concerns: 

Responding to these new statistics, John Stewart, Policy
Manager for the Residential Landlords Association has said:

“Today’s figures show that the courts are unable to cope
when landlords seek to repossess properties for legitimate reasons.

 â€œWith proposals to scrap Section 21 repossessions set
to lead to a significant increase in cases brought to the courts, it is now a
matter of urgency that the Government brings forward its plans for court
reform.  This requires a fully funded, properly staffed, dedicated housing
court that can bring rapid justice for landlords and tenants. Tinkering with
the existing system will not be good enough.�

See the Ministry of Justice’s Mortgage and Landlord Possession Statistics (Excel Spread Sheet download) for the second quarter of 2019 here – see table 6a “Private Landlord� tab

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