An increase in buy-to-let repossessions is exacerbating the rental supply shortage and leaving evicted families without legal aid needed to fight their case.

Ministry of Justice figures from April to June show that landlord possession claims increased by 9% and possession orders by 15% compared to the same quarter last year. The Law Society warns that the housing crisis continues to grow, more than 29,000 eviction claims are leaving tens of thousands at risk of losing their homes.

President Nick Emmerson (main image) says legal aid has become increasingly unavailable for them, as 25 million people do not have a local legal aid provider for housing advice.

He adds: “It is unacceptable that legal aid remains elusive for those who need it most. While we welcome Labour’s upcoming Renters Rights Bill, the UK government must use the legislation to expand access to housing legal aid and ensure the sector is sustainable.”

Official data

Ministry of Justice data shows 13,570 buy-to-let mortgages have arrears of more than 2.5% of the outstanding balance, an increase of 1% on the first quarter in 2024, while 710 buy-to-let mortgage properties were repossessed in the quarter, up 13%.

Head of property at audit, tax and business advisory firm, Blick Rothenberg, Heather Powell (pictured), explains that while these repossessions may release properties for families to buy, it will pile further pressure on the rental market.

She adds: “It is likely that these repossessions have in part arisen where landlords increased their borrowings when remortgaging properties. Those landlords are now getting caught out by the significant increase in interest rates from September 2022.

“Combined with the expectation that the new government are going to increase the rate of capital gains tax many landlords are likely to be considering their investment strategy – and may sell up sooner rather than later to avoid the CGT rise.”

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