Eviction disputes are increasing across the rental sector, with landlords facing mounting costs and delays as tenants challenge possession proceedings, according to law firm Thackray Williams.
The firm reports a sharp rise in instructions from landlords seeking vacant possession of their properties following the introduction of the Renters’ Rights Act, which has led to more challenges by tenants.
Growing court backlog
Mustafa Sidki, Contentious Construction Litigation Partner at Thackray Williams, said: “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.”
He added: “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.”
The firm is seeing rising instructions to serve notices under Section 8 of the Housing Act 1988, as landlords continue to seek an exit from the sector. This trend comes amid broader pressures in the UK housing market, with landlords reassessing their investment positions.
Economic pressures on landlords
Sidki attributed the increase in eviction proceedings to underlying economic factors. 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.
Uncertainty about EPC C requirements by 2030 under the Decent Homes Standard adds to the sector’s challenges, with landlords facing potential retrofitting costs.
System-wide pressure
Sidki concluded: “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.”
The situation reflects wider challenges in the UK rental market, where landlords are navigating increased regulatory requirements while new registration schemes add to administrative burdens. Unless the economics of the private rented sector improve and more affordable rental homes become available, both landlords and tenants are likely to face continued difficulties, with courts managing an expanding backlog of possession cases.
