Blog: Landlords paralysed by confusing and ever-changing eviction laws
Paul Shamplina, Head of Property for Hamilton Fraser and Founder of Landlord Action on 'confusing' eviction rules and the challenges facing landlords as we enter 2021.
Ordinarily, I would start this with “Happy New Year”, but it certainly hasn’t been the optimistic start we had all hoped for, with the country once again in national lockdown.
Although we know more about what to expect than we did in the first lockdown back in March, it could be argued that this is both a blessing and a curse. We know how to adapt and muddle through the best we can, but we also know the devasting impact it is having on so many people.
One thing that has struck me from a landlord’s perspective, is the level of confusion over what is and is not permitted.
Landlords with troublesome tenants are really struggling to decipher from all the ‘noise’, what the changing laws mean for evictions and a potential timeframe for when they may realistically gain possession.
Extension to ban on evictions
The Government has announced a further extension of the eviction ban for at least six weeks until 21 February 2021. But, who knows, there is a possibility that this may be pushed back further upon review.
Up until this point, only cases of anti-social behaviour, domestic violence or "substantial" rent arrears (defined as equivalent to nine months' rent debt accrued prior to the first lockdown on 23 March) were permitted to proceed.
However, it is now understood that landlords will be able to enforce possession orders if their tenants are more than six months in arrears, irrespective of when the arrears accrued and therefore no longer have to pre-date COVID.
To make it very clear, landlords are still able to give tenants notice seeking possession - possession hearings are continuing within the court system and possession orders are being granted.
For most new cases, landlords will have to give six months’ notice, meaning a court claim would not begin until early August.
It is bailiffs that are NOT able to proceed with serving a 14-day N54 Notice of Eviction or enforcing a physical eviction, except under the exemptions discussed above i.e. anti-social behaviour, domestic violence or "substantial" rent arrears.
Whilst it is positive that the Government has recognised the strain being put on landlords (as well as tenants), and as such has reduced the requirement for rent arrears being owed to six months in order to be exempt from the current or future eviction bans, there is a caveat.
Landlords are required to make a further application to court to take advantage of the exemption. A copy of the order allowing the eviction to proceed must be supplied to either the bailiff’s office or the HCEO before eviction is permitted.
In reality, this is yet another costly procedural step which will take time. What we also must recognise is that even prior to the pandemic, there was a chronic shortage of bailiffs. We now have a situation where evictions have not taken place for 11 months, so even if landlords are granted possession, the likelihood of getting an eviction date before April or May, in my opinion, is highly unlikely.
Over the course of the last year, I’ve made it a key part of my role to get on the phone and speak to landlords personally, to understand the realities of what they are facing and what, if anything, could be done to help them.
As I’ve said many times before, I’ve been astounded by the level of understanding that landlords have shown struggling tenants whose livelihoods have been stripped away during this pandemic.
However, sadly there are also too many stories, where some tenants have used the current blanket restrictions to avoid paying rent and take advantage of a situation that so many others are suffering through.
One landlord called me just before Christmas - his tenant has not paid rent since the pandemic began, saying he had lost his job and could not afford the rent.
The landlord accepted this and simply asked for proof of employment termination, which he still has not received. The landlord has since discovered that the tenant and his wife went to the Caribbean for three and half weeks. All the while, the landlord faces an expensive, frustrating and never-ending wait to get his property back.
One thing I would like to stress to landlords who know for certain that they have unscrupulous tenants, is that unless they enforce a money order, and turn it into a registered county court judgement, that debt will never show up when those tenants move on, leaving another landlord at risk of experiencing the same as you.
