Arrears And Possessions Continue To Fall

The number of mortgages in arrears continued to fall in the second quarter of this year, and is now at its lowest level since records began more than 20 years ago. Data from the CML show that at the end of June there were 92,500 mortgages in arrears of at least 2.5% of the balance (0.84% of the total), down from 95,900 at the end of March. The number of mortgages in arrears was 13.4% lower than a year ago, when the total stood at 106,800, and is now at its lowest level since the run of figures began in 1994. Read more on the CML website.

Concerns Raised Over Threat Of Eviction For Many Tenants

More than 352,000 rental sector tenants in England have faced the threat of losing their home over the last year - equating to one tenant every 90 seconds - according to analysis from Shelter. The charity, which used Ministry of Justice figures to make the findings, said that one in every 55 rented households in England was put at risk of losing their home over the last year. Shelter's calculations are based on the number of possession claims issued by landlords in courts over the last year.Possession claims do not necessarily end in the tenant being evicted, although Shelter's figures suggest that in around one in three cases tenants do end up losing their home. Read more on the BT website.

Rental Tenants Facing Homelessness

Some 47,220 landlord possession claims were recorded in county courts between January and March against tenants, which the report, released by the Ministry of Justice (MoJ), said marks the biggest quarterly figure in records going back over 10 years. The figures, which cover both private and public sector tenancies across England and Wales, show a stark contrast between the situation in the rental sector and the number of mortgage repossession claims being made against home owners in the courts, which at 12,704 in the first quarter of the year is at its lowest level in a decade. Housing charity Shelter said it has seen evidence of tenants falling victim to "revenge evictions", after they had complained to their landlord, letting agent or council about a problem with their home that needed putting right, such as a leaking roof or mould and damp. Read more on the Shropshire Star website.

Fast-Track Possessions to Rise

Housing associations will increasingly use ‘fast-track’ possession notices to evict tenants who fall behind with rent payments.  Inside Housing’s survey of 73 social landlords in Great Britain shows that, of 37 housing associations which responded, 23 plan to use ground 8 of the Housing Act 1988 to evict tenants who rack up arrears, with just 11 ruling it out.  Traditionally associations have used grounds 10 or 11 under the act, which are discretionary and rely on a court making a decision as to the tenant’s circumstance. However, ground 8, which only applies to some assured shorthold housing association tenants, is mandatory, meaning a court will be obliged to grant eviction if eight weeks of arrears have mounted up. Several landlords have now said they will use ground 8 as a last resort or in extreme circumstances as a result of the impact of welfare reforms. Read more on Inside Housing.

Human Rights Judgement Could Tear Up Shorthold Tenancy Agreements

The Residential Landlord Association (RLA) has accused the European Court of Human Rights (ECHR) of "meddling" with the UK's housing market. The accusation has been provoked by a case that could decide the future rules for shorthold tenancies.  The ECHR has already decided that council and housing association tenancies are subject to Article 8 of the European Convention of Human Rights, giving a right of respect for the home and restricting the extent to which a public authority can interfere with a person’s right to respect for their home.  The case is an appeal against a County Court Judge’s decision that the same rules will apply to the private sector. If the appeal is dismissed and the original judgement upheld, landlords would have to jump through many more hoops to regain possession of their properties.  Read more on the RLA website.