Possession figures suggest “significant wave of homelessness” looms

Newly-released possession statistics suggest a “significant wave of homelessness” is approaching – as the latest Legal Aid Agency procurement exercise indicates a shortage of law firms to ensure proper access to justice.

Ministry of Justice figures for April to June 2022 show mortgage and landlord possession cases have surged year-on-year. Last year’s figures reflect the impact of Covid-related restrictions and procedures. However, the Ministry of Justice says claim volumes have increased quarter on quarter since Q2 2021.

Compared to April to June last year, landlord possession claims increased from 6,997 to 18,201 (160%), orders from 5,431 to 14,319 (164%), warrants from 3,786 to 7,728 (104%) and repossessions from 1,582 to 4,900 (210%).

Housing specialist Giles Peaker, a partner at Anthony Gold Solicitors, said: ‘The proportion of private landlord possession claims (including section 21 accelerated claims) is about 67%, rather than 42% in 2019. In 2019, the majority of possession claim were by social landlords. So, the current increase in possession claims is massively driven by private sector landlord claims.’

Jeinsen Lam, housing solicitor and team leader at South West London Law Centres, said many social landlords became far more reluctant to issue claims when Covid struck and have perhaps changed their rent possession practices.

Lam said:

“At the moment, on duty, most the cases appear to be rent arrears, private landlord and mandatory grounds for possession, with some section 21 possession cases thrown in.”

Peaker said rent arrears evictions are at the highest level recorded and section 21 evictions are higher than 2019 levels:

“This suggests both that there is a significant wave of homelessness approaching which will impact local authorities, and, given the worsening cost of living situation, that these private landlord figures have further yet to rise.”

Mortgage claims increased from 2,499 to 3,476 (39%), orders from 400 to 2,382 (496%), warrants from 525 to 2,419 (361%), and repossessions from 45 to 770 (1,611%).

The Ministry of Justice’s report states that, prior to Covid, the historical fall in mortgage possession actions since 2008 ‘generally coincided’ with lower interest rates, a proactive approach from lenders in managing consumers in financial difficulties and interventions such as the mortgage rescue scheme and mortgage pre-action protocol.

As the number of landlord and mortgage claims steadily rises, proper access to advice and representation remains crucial. However, the Legal Aid Agency’s latest procurement exercise suggests a shortage of providers in several parts of the country.

The agency is currently tendering for housing and debt contract work in Kingston upon Hull, Cheshire, Shropshire, Staffordshire, South East Wales, South Tyneside and Wigan. The agency is also seeking providers to deliver housing possession court duty scheme services in Crewe, Hull, Stafford, Walsall and Wigan.