Overview of Landlord Repossessions
The UK’s private rented sector has faced significant challenges in recent years, with economic pressures driving many Landlords to the brink of financial crisis. A combination of rising interest rates, inflationary pressures, changes in tax regimes, and legislative requirements have lead to an increase in Landlords being repossessed by mortgage lenders.
For Landlords operating on minimal profit margins, additional costs have become unsustainable. Even those with fixed-rate mortgages are not immune, as they faced higher rates when deals come to an end. The inability to refinance at affordable rates has left some Landlords with no choice but to sell their properties or face repossession.
For some, the cost of compliance has outweighed the potential returns, leading to decisions to exit the market altogether or default on mortgages due to financial strain.
The numbers of landlord repossession actions for all court stages have increased compared to the same quarter of last year (July to September 2023).
The Responsible Pet Owner
With the onset of the Renters Rights Bill becoming law at some point this year, one of the prominent area relates to Pets, reported by the press as a total ban on landlords being able to refuse a tenant with pets.
In fact, the Bill places a great deal of ‘responsibility’ on the pet owner.
I am the proud owner of two kittens Zeus Maximus and Apollo Aurelius. Taking on these little ones demonstrates exactly what a ‘responsible pet’ owner needs to deal with.
A Pet Profile provides an overview of the type of pet that will be living at the property and will give the landlord an idea of whether or not consent will be granted.
1. Has the pet owner registered with a vet?
2. Does the pet owner have insurance cover for any unforeseen medical circumstances?
3. Have the pets in question - generally cats and dogs, kittens and pups been. Micro-chipped?
Something else to think about for 2025
At the moment the focus is well & truly on the Renters’ Rights Bill and for good reason given the impact that such a significant piece of legislation will have on the Private Rented Sector. However, there are other crucial pieces of information / updates that property professionals need to be aware of.
Land Registry Fees
The Land Registry is a cornerstone of land registration in England & Wales, relied upon by many different Stakeholders as a source of information. From Monday 9 December, 2023, fees for HM Land Registry information services increased for the first time in more than 10 years.
The fee will increase by £4, for example:
inspection of an individual register or plan (digital copy) increased from £3 to £7
official copy of an individual register or plan (digital copy) increased from £3 to £7
registration, cancellation or rectification of an entry per name (Agricultural Credits Service or application) increased from £1 to £5
Financial Sanctions guidance for Letting Agents
As from the14th May 2025, letting agents will be subject to reporting obligations in order to facilitate Office of Financial Sanctions Implementation OFSI’s aim of encouraging better sanctions compliance.
Why Letting Agents?
Letting Agents have been added to the list of “relevant firms” under financial sanctions regulations.
Under financial sanctions regulations, a letting agent is described as “a firm or sole practitioner (“P”) that carries out, or whose employees carry out, letting agency work-
“Letting agency work” is defined as follows:
“letting agency work” means work—
(a). consisting of things done in response to instructions received from
(i) a person (a “prospective landlord”) seeking to find another person to whom to let land for a term of a month or more, or
(ii)a person (a “prospective tenant”) seeking to find land to rent for a term of a month or more, and
(b) done—
(i) in relation to a prospective landlord, from the point that the prospective landlord instructs P [i.e the letting agent], or
(ii) otherwise in the course of concluding an agreement for the letting of land for a term of a month or more.