Eviction disputes leave landlords facing rising costs and delays

Eviction disputes are driving up costs and delays across the rental sector, a leading law firm has warned.

Thackray Williams says has received a sharp rise in instructions from landlords seeking vacant possession of their properties following the introduction of the Renters’ Rights Act.

This, in turn, is leading to more challenges by tenants, it adds.

Eviction notices

Mustafa Sidki, Contentious Construction Litigation Partner at Thackray Williams, (pictured), says: “Unfortunately, the number of landlords looking to sell their investments is exacerbating the lack of affordable rental housing, prompting tenants to challenge eviction notices because they can’t find anywhere else to live.

“The pressures on both sides in the private rental sector are creating a perfect storm, which is leading to lengthy and costly litigation – and further pressure on a court system that is already struggling.”

Landlords are going to face increasing costs as their tenants resist eviction and the courts will have to contend with a growing backlog.”

Sidki adds: “Unless the economics of the private rented sector improve and more affordable rental homes become available, renters will struggle to find homes, landlords are going to face increasing costs as their tenants resist eviction and the courts will have to contend with a growing backlog.”

Thackray Williams reports that it is seeing rising instructions to serve notices under Section 8 of the Housing Act 1988, as landlords continue to seek an exit.

Higher costs

Sidki attributes the increase to the underlying economics, explaining landlords in England and Northern Ireland face an impending 2% increase in tax on property income, having already lost the ability to deduct full mortgage interest under Section 24 of the Finance Act.

Quarterly reporting under Making Tax Digital adds further administrative burden, alongside rising maintenance, insurance and licensing costs.

Many landlords are also refinancing at 5% to 6% as fixed-rate buy-to-let deals of 1% to 2% expire this year.

There is also uncertainty about what EPC C requirements by 2030 under the Decent Homes Standard will mean in practice.

Sidki concludes: “This is not simply a landlord issue or a tenant issue – it is a system-wide pressure point.
“Possession disputes are now exposing the strain across the whole rental market, from landlords reassessing whether they can afford to stay invested, to renters struggling to find homes, and courts being asked to absorb the fallout.”