'Industry must prepare for repossession process changes' | Mortgage Strategy

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Letting agents are being urged to prepare for changes to the repossession process so they can better assist landlords when the ban on evictions comes to an end this month.

Rental payment automation platform PayProp says agents will play a crucial role in explaining the new system to landlords and helping them to manage rental arrears to ensure eviction remains a last resort.

From 24 August, courts will start to hear rental property repossession cases again and is creating temporary ‘Nightingale Courts’ to deal with the backlog of cases.

The process of repossessing will now be different than before the Covid-19 pandemic.

If a landlord’s possession claim relates to rent arrears or non-payment of rent, they will need to provide information on the renter’s financial circumstances and the effect the pandemic has had on them.

If the information is not provided or is deemed inadequate by the courts, they will have the option of adjourning the case. Landlords issuing a notice for eviction will also be required to provide tenants with three months’ notice until 30 September.

PayProp chief sales officer Neil Cobbold says: “following a five-month hiatus, evicting a tenant through the courts may take longer than usual once the ban is lifted.

“The government’s new measures suggest that it wants to limit evictions pursued solely due to Covid-19 arrears. It has also been made clear that the courts will prioritise cases of extreme arrears accrued before lockdown, and cases of anti-social behaviour and domestic violence.”

“It’s vital that agencies communicate the changing situation to landlords so they can assess their options carefully as the ban is lifted.”


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