Court proceedings for no-fault evictions in England have surged to their highest level in six years, heralding the impending legislation to ban this practice. The Ministry of Justice has reported that between April and June, there were 7,491 claims for no-fault evictions, a 10% increase compared to January to March and a significant 35% surge from the same period last year. During this time frame, 2,228 no-fault evictions were executed involving bailiffs, which represents a 41% increase year on year but remains relatively unchanged compared to the first quarter of 2023.
These figures highlight the urgent need for the renters reform bill, currently under consideration in parliament, to outlaw no-fault evictions. Currently, landlords in England can legally ask tenants to leave with a two-month notice under section 21 of the Housing Act 1988, without providing a reason. This provision has instilled fear in tenants and inhibited their confidence to address housing defects.
Polly Neate, the CEO of housing charity Shelter, emphasized the abuse of the current system by landlords, who exploit it by increasing rent and resorting to no-fault eviction notices when tenants are unable to pay. As a result, tenants feel powerless as the constant threat of eviction looms over them. Neate stressed that the government must prioritize the elimination of no-fault evictions as soon as parliament resumes, allowing England’s 11 million private renters to have a semblance of stability in their homes.
Dan Wilson Craw, the deputy CEO of campaign group Generation Rent, observed that renters are disproportionately affected by the escalating cost of living crisis. Renters face eviction in record numbers due to rent arrears, and landlords increasingly use evictions as a means to sell properties or raise rents. High rents make finding alternative accommodation incredibly challenging, often forcing individuals to leave their hometowns or seek homelessness support from local authorities. To rectify this situation, tenants need improved safeguards when their landlords sell properties, benefit support that reflects actual rents, and the construction of more homes, particularly social housing, to lower rent prices.
Although the Conservative party pledged to ban no-fault evictions in its 2019 election manifesto, progress has been sluggish. The renters reform bill had its first reading in May, but a date for the second reading has not yet been scheduled. Delays could jeopardize the bill’s passage in this parliament, causing a potential years-long delay in implementing the ban on no-fault evictions. Labour has also expressed a desire to abolish section 21 notices, raising hopes that the measure will eventually succeed regardless of the next general election outcome.
Meanwhile, tenants continue to face eviction. Since the 2019 election, county courts have seen 54,724 section 21 claims. It is likely that many more tenants received notices from their landlords but vacated the property before legal proceedings commenced.
The National Residential Landlords Association (NRLA) attributes the rise in evictions to landlords opting to sell their properties. Chris Norris, the NRLA policy director, states that tax changes aimed at decreasing the supply of rental homes, combined with escalating costs and uncertainty surrounding planned reforms, are leading landlords to exit the market. In many cases, landlords are compelled to repossess their properties. To prevent such repossessions, the government must reconsider the tax increases on the sector and ensure that the renters reform bill garners the confidence of responsible landlords, as well as tenants.
Separate figures released by UK Finance reveal that in the three months ending June, the number of buy-to-let mortgages in arrears rose by 28%, while homeowner mortgages in arrears increased by only 7%. Although there has been a 7% rise in buy-to-let mortgaged properties taken into possession, it remains lower than the pre-pandemic trend.
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