A report from an influential committee of MPs cites survey data from PropTech player Reapit on arrears and evictions.
It revealed that almost 70% of property professionals surveyed by Reapit issued Section 21 eviction notices due to rent arrears.
The company added in its recent submission to the Commons Public Accounts Committee that failure to raise Local Housing Allowance rates in line with local rental prices means that tenants receiving the LHA face significant affordability gaps, which could lead to arrears, evictions and homelessness.
Reapit’s evidence also highlighted broader concerns about the shrinking PRS.
The company’s 2024 survey report revealed that more landlords are selling rental properties than purchasing them, which could lead to a decline in available rental stock. Only 11.9% of properties sold by landlords were bought by other landlords, compared to the 54.5% of landlords who are selling properties.
This reduction in supply will result in higher rents, making affordability an even greater challenge for tenants reliant on LHA.
Reapit’s commercial director Neil Cobbold says: “Having access to the relevant data can shine a light on the realities in the PRS that should drive change, such as the fact that arrears are far more likely to be the reason for a Section 21 eviction, and not ulterior motives, as some suspect. It’s crucial that the industry continues to work with government to drive meaningful change.
“Without significant court reforms to reduce delays in eviction cases, we feel the current Renters’ Rights Bill will make the affordability situation for tenants worse, as landlords appear to be selling in reaction to the legislation, leaving tenants with less choice and higher rents.
“What we really need is a joined-up strategy across government departments to stabilise the PRS. This includes credible court reforms to restore landlord confidence, measures to bring vacant properties back into use, and ensuring housing benefit calculations reflect real-time rent prices.
“Without these changes, tenants across the UK will continue to struggle with rising rents due to housing shortages, and landlords will shoulder increased risk from being unable to recover properties when necessary.”
