Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Eviction Disputes Drive Up Costs and Delays for Landlords
A leading law firm has warned that eviction disputes are causing increased costs and delays across the UK rental sector. Thackray Williams reports a sharp rise in instructions from landlords seeking vacant possession of their properties following the introduction of the Renters’ Rights Act, which has led to more challenges by tenants.
Thackray Williams states that the number of landlords looking to sell their investments is contributing to a shortage of affordable rental housing. This shortage is prompting tenants to challenge eviction notices, as they struggle to find alternative accommodation. The firm notes that these pressures are resulting in lengthy and costly litigation, adding further strain to a court system that is already under pressure.
The law firm is seeing more landlords instructing them to serve notices under Section 8 of the Housing Act 1988 as they seek to exit the market. According to Thackray Williams, landlords in England and Northern Ireland are facing an impending 2% increase in tax on property income and have already lost the ability to deduct full mortgage interest under Section 24 of the Finance Act. Additional administrative burdens include quarterly reporting under Making Tax Digital, as well as rising maintenance, insurance, and licensing costs.
Many landlords are also refinancing at higher rates, with fixed-rate buy-to-let deals of 1% to 2% expiring and being replaced by rates of 5% to 6%. There is also uncertainty regarding the impact of EPC C requirements by 2030 under the Decent Homes Standard.
Thackray Williams concludes that possession disputes are exposing strain across the entire rental market, affecting landlords, tenants, and the courts.
Source: The Negotiator