Possession waits now three times over target

Landlords in London are waiting three times longer than they should for repossessions, with lengthy waiting times recorded in most regions. NRLA head of policy James Wood takes a deep dive into the issue.

As the Renter’s Reform Bill slowly makes its way through parliament, the NRLA has continued to highlight the importance of court reform and adequate staffing with officials. 

A properly functioning court system that addresses tenant and landlord issues quickly is vital to retain confidence and investment in the sector after Section 21 is removed. Unfortunately, many landlords feel that the courts are not properly functioning at the moment.  

Evidence from landlords to the Levelling Up, Housing and Communities Committee (LUHCC) questioned the ability of the courts to cope with the added workload likely to arise from an increase in the number of Section 8 notices. 

Are these concerns justified though? The NRLA recently sent a freedom of information request to the MOJ asking for a monthly breakdown of possession claims by region to see if any particular trends have emerged, and whether there are any areas of concern developing.  

In particular, we looked at differences between claims started using Section 21 (accelerated landlord claims) and those started under Section 8 (typically private landlord claims) to identify whether landlord concerns are justified about the loss of the accelerated route. 

Wait times are still too long regardless of the notice served 

Previous research by the NRLA established that, ideally, a possession claim should take 10 weeks from filing the papers to a bailiff attending the property. This was based on the timeframes set out in the Civil Procedure Rules and the required notice given on tenants before a bailiff arrives. 

Median average wait times for repossession 

In 2023, there are no areas of the country which come close to matching this ideal timeframe.  

Most English regions take nearly twice as long to complete a repossession case. In London, claims take around three times as long to complete as the ideal. 

 

Section 8 claims are also noticeably slower in most regions than those following a Section 21 notice (accelerated possession). Private landlord possession claims in most regions will typically take a week longer to complete than accelerated claims. However, in London, where the number of private landlord claims is particularly high this gap widens to four weeks. This suggests that the courts in London are particularly under-resourced.  

It also suggests that the courts may struggle when the claims that would now be made under an accelerated possession claim move over to the private landlord claim process. This is because the accelerated possession claim can be handled without the need for an in-person court hearing, allowing for more efficient use of court resources. The South East and North West of England are the regions most likely to experience future delays given their relatively high volume of accelerated claims. 

Mean average wait times for possessions

Delays are even higher when factoring in outlying cases. Likely because this includes the more difficult, contentious cases that would require more of the courts time.  

In London, mean average wait times for Section 8 claims rise to four times longer than the ideal. In most other regions, it takes over half a year to go from starting a Section 8 claim to repossession. 

 

More tenants appear to be staying after the possession order is issued.

Since records began in 1999, most tenants have typically left before a bailiff appointment is required. In a typical year, 33% of accelerated possession orders require a bailiff appointment to repossess the property. Over the last ten years this figure has risen to an average of 37%. 

This year is well on track to be significantly higher, with 43% of accelerated possession claims needing a bailiff appointment. In Wales this figure rises to 55% of accelerated claims.  

There are two likely reasons why this figure has risen:  

  • The ongoing supply crisis and rising mortgage rates may mean that tenants are struggling to find alternative accommodation within their price range. 

  • Increasingly, we are hearing reports of local authorities advising tenants to stay until a bailiff arrives to repossess the property. 

Bailiff availability continues to delay justice 

Given the increased need for bailiffs, it is unfortunate that the bailiff service appears to be the biggest reason for delays in accessing justice. 

Bailiffs are typically required to give a minimum of two weeks notice before enforcing a warrant. However, in most regions, it typically takes seven weeks between the issue of a warrant and a bailiff appointment. In London, it takes fifteen weeks to schedule an appointment after a warrant is issued. All of which points to inadequate staffing and resourcing of the bailiffs. 

In June, the MOJ announced that high-risk bailiff appointments would be paused in certain areas of the country due to insufficient PPE. As a result, we expect these figures to be worse in the second half of 2023. 

Social landlord possession claims are rising again 

Historically, social landlords have typically made up the largest share of possession claims in the country. Following the pandemic, claims by social landlords reduced substantially, reducing the strain on court resources. 

This now appears to be coming to an end. Since Quarter 3 2022, social landlord claims have risen by 80% across the country, however these claims are still a long way from previous highs and the PRS continues to serve more possession notices. 

Despite this in some areas of the country, social landlord claims have started to exceeded private landlord ones.  

 

Should this trend continue, it is likely to undo the work the courts have done to bring down post-covid wait times, particularly when combined with the loss of Section 21 notices. 

What is the NRLA calling for? 

The LUHCC warned that “the courts system is already struggling to process housing cases quickly enough. The pressures on the courts will be exacerbated by the repeal of Section 21, as landlords will seek to regain possession under Section 8, especially in the case of rent arrears and antisocial behaviour.” 

The NRLA agrees with this assessment, and we will continue to make the case that it is vital that the government: 

  • Allow an accelerated route for specific possession grounds to ease court scheduling.  

  • Prioritise anti-social behaviour and serious rent arrears for resolution within four weeks.  

  • Improve funding for courts to cope with the increased complexity of possession claims. 

These requirements must be in place before Section 21 is removed if landlords are to retain confidence in the reforms proposed.