Repossession claims by private landlords in the final three months of last year fell by 37 per cent compared to the same period in 2019, according to Ministry of Justice data.
This comes despite courts beginning to hear possession cases again following a six-month stay on proceedings imposed by the Financial Conduct Authority due to the pandemic.
The number of possession claims made under the accelerated procedure, used by both private and social landlords, also fell by just under 43 per cent in the fourth quarter of 2020 compared to the prior 12-month period.
The data, which covers England and Wales, confounds fears that repossessions would surge following the partial lifting of the repossessions ban last September.
Overall, across the whole of last year, the number of claims by private landlords to repossess properties fell by 48 per cent, while the number of claims made under the accelerated procedure was just over 52 per cent lower.
However, the Ministry of Justice statistician says these early figures should be treated with “caution”.
The statistician adds: “While these statistics are of interest to the public, it is worth noting that the small volumes of repossession actions mean that the data is unlikely to be representative of general trends in possessions. Caution should therefore be used when interpreting and applying these figures.”
Data from the National Residential Landlords Association says that over 800,000 renters in England and Wales have built arrears since lockdown measures started in March last year.
The body is calling for a package of hardship loans and grants for affected tenants to pay off arrears built since the beginning of the health crisis, so tenants can stay in their homes and are prevented from facing the consequences of damaged credit scores.
NLRA chief executive Ben Beadle says: “Today’s figures show that despite fears to the contrary, landlords have prioritised sustaining tenancies and supporting renters during the pandemic.
“That said, landlords cannot continue indefinitely going without receiving rent. Bans on repossessions are only leading to tenants accumulating more and more debt which will become impossible for them to pay back. This will eventually lead to many more losing their homes.”
Today the FCA released its latest Financial Lives October survey and found there are now 27.7 million UK adults with vulnerable characteristics “such as poor health, low financial resilience or recent negative life events”. This is a 15 per cent rise from its previous survey last February.
Last month, the financial watchdog also extended the period that landlords can “generally” enforce repossessions from the end of January to 1 April, except in circumstances where tenants are guilty of anti-social behaviour or fraud.
