Rental market reaching crisis point as ‘perfect storm’ hits landlords and tenants

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Landlord Action’s Paul Shamplina (main picture) has explained to Radio 4 listeners how an almost broken court system and higher interest rates are driving a rush in Section 21 evictions before rent reform laws kick in.

Speaking on the You and Yours programme, Shamplina said Section 21 evictions had already gone through the roof.

“I’ve been in the industry for 32 years and I’ve never known such a rental crisis. We’ve seen a 91% increase in Section 21 accelerated possession claims issued at court between April 2022 and April 2023.”

The programme featured interviews with two tenants in the same Manchester block who had been served with eviction notices before they could accept a rent rise and were now struggling to find new flats.

Biggest losers

“The biggest losers will be tenants,” Shamplina told listeners. “You will have decent tenants paying rent on time, and either landlords are putting rent up because of interest rates or they want to sell – it adds to the crisis because of a stock shortage.

“One agent had 80 applicants fighting over one property in Islington, which then becomes a bidding war.”

He added that he had never seen so many landlords selling properties as well as anti-landlord feeling in the press.

“Historically, a lot of landlords haven’t put rents up but they are panicking. A lot will be whacking in Section 21s as they feel they can’t get their properties back because the court system is on the brink of being broken.”

GUIDE: What to do if your tenant gets into arrears.

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