Buy-to-Let Evictions Soar - but Beat Pre-COVID Levels

Buy-to-let evictions are on the rise, according to the latest government statistics for October to December 2022.

Landlord claims to repossess homes were up 42 per cent in the final quarter of last year compared to 12 months earlier.

The number of homes landlords repossessed doubled from 2,729 at the end of 2021 to 5,409 in Q4 2022.

Courts handled 20,460 claims - up more than 6,000 from 12,436 in Q$ 2021, says the Ministry of Justice.

Court orders and warrants more than doubled in the same period.

Orders increased 135 per cent from 6,865 to 16,158, while warrants rose from 4,285 to 8,717.

London tenants worst hit

Analysing the data, the MoJ says the number of claims and evictions were spread across the country, although the figures were higher in London.

The average time for a landlord repossession to go through the courts has fallen to 21.7 weeks - down from 42.3 weeks in 2021.

The MoJ also points out that soaring eviction figures in Wales could result in landlords quitting buy-to-let to avoid compliance with new private rental laws.

“Landlord possession actions have increased since Q2 2021,” says the MoJ. “The number of landlord possession actions for all court stages has increased compared to the same quarter of last year.

“Within the landlord possession actions, the Accelerated procedures have particularly risen across all the action types, claims, orders and warrants.

Fear landlords quitting Wales

“In Wales, the accelerated procedure for claims, orders and warrants increased by 354 per cent, 503 per cent and 522 per cent, respectively. Whereas in England, the accelerated procedure for claims, orders and warrants increased by 69 per cent, 148 per cent and 182 per cent.

“This large proportionate increase in Wales could be the effect of landlords exiting the sector due to the Renting Homes (Wales) Act that was introduced on 1st December 2022.”

However, the figures are still lower than pre-COVID levels:

Source: MoJ

In Q4 2022, 37 per cent (7,606) of landlord possession claims were from social landlords, compared to private landlord claims (31 per cent or 6,254). Contrasting with pre-covid proportions, when most claims (around 60 per cent) were from social landlords.

East London blitzed by evictions

Private landlord claims concentrate in London, with 5,807 landlord claims and 4,396 landlord orders at London courts in Q4 2022, accounting for 28 per cent and 27 per cent of the respective totals. In London, claims increased by 56 per cent for landlord claims and 177 per cent for landlord orders.

The 103 per cent increase in landlord warrants compared to Q4 2021 reflected significant gains across all regions. The most considerable regional rise was in London - making up 32 per cent of all landlord warrants.

The East London borough of Newham, with 39 per cent of homes privately rented, had the highest number of private landlord claims (369 per 100,000 homes). The neighbouring boroughs of Havering, Barking & Dagenham filled the other top three places.

The highest number of repossessions outside London was in Merthyr Tydfil, Wales.

The MoJ added 43 local councils in England and Wales reported no private landlord repossessions for Q4 2022.