Possession claims on the rise

 The Ministry of justice recently published the figures for property possessions across both mortgages and rentals, unsurprisingly possessions have increases across the board but thankfully timelines for possession are decreasing albeit slower than we would like.

Tax implication of S24 coupled with interest rates, the cost of living and increases in landlords overall costs as well as the threat of the Renters Reform Bill have created the perfect storm for many landlords who are now exiting the market as investing in property for some is no longer financially viable.

So lets’ look at the numbers which are compared to the same quarter April – June of 2022

Mortgage possession

Overall mortgage possession claims increased from 3,478 to 3,986 (15%)

Possession orders were up from 2,368 to 2,536 (7%)

Warrants for possession went up from 2,446 to 2,654 (9%)

However, repossessions by county court bailiffs decreased from 780 to 642 (18%).

Timelines

The median average time from claim to mortgage repossession has decreased from 108.4 weeks to just 48.7 weeks.

Mortgage possession claims fell from a peak of 26,419 in April to June 2009 (in the aftermath of the 2008 financial crash) before stabilising from April to June 2015 (4,849, see table 1). In the most recent quarter, April to June 2023, there were 3,986 claims for possession, up 15% from the same quarter in 2022.

Newham, in the London region, had the highest rate of mortgage possession claims at 206 per 100,000 households owned by mortgage or loan, followed by Tower Hamlets (London region) and Blackpool (North West region); with 163 and 148 claims per 100,000 respectively.

Landlord Possession

Overall landlord possession claims increased from 18,193 to 22,537 (24%),

Possession orders were up from 14,309 to 16,010 (12%),

Warrants for possession went up from 7,793 to 9,886 (27%) and repossessions rose from 4,951 to 5,868 (19%).

Landlords using the accelerated possession procedure has increased across the full process

Accelerated possession claims increased by (34%)

Possession orders were up (22%)

Warrants for possession went up (48%)

Repossessions rose (47%)

 

In Wales the Accelerated procedure for claims, orders, warrants and repossessions increased by 9%, 63% and 157% respectively. This large relative increase in Wales has coincided with the introduction of the Renting Homes (Wales) Act that was introduced on 1st December 2022.

Timelines

The median average time from claim to landlord repossession has decreased from 23.4 weeks to 22.1 weeks.

33% or 7,476 of all landlord possession claims were submitted by social landlord, with private landlords equating to 32% or 7,301

The highest private landlord possession claim rates were found in London, with 7 of the 10 highest rates occurring in this region. Barking and Dagenham had the highest rate for private landlord claims (609 per 100,000 households owned by a private landlord).

Regional Repossessions (by County Court Bailiffs

City of London had the highest overall rate of mortgage repossessions at 147 per 100,000 households owned by a mortgage or loan.

Private landlord repossessions were highest in Bexley with 185 per 100,000 households owned by a private landlord.

Social landlord repossessions were highest in Chorley with 151 per 100,000 households owned by a social landlord.