A landlord and property manager in north London has highlighted growing challenges faced by small landlords due to recent legal reforms affecting eviction procedures. Richard Hanouka detailed his experience this autumn, where he found it more cost-effective to pay a tenant to vacate a flat than to pursue eviction through the legal system after the tenant stopped paying rent.

Since the abolition of Section 21, which previously allowed landlords to regain possession of a property without providing a reason, landlords must now wait until tenants accrue at least three months of unpaid rent before they can initiate possession proceedings. In Hanouka’s case, this equated to £7,500 in arrears before he could even serve notice. The subsequent eviction process involves a four-week notice period, obtaining a court hearing, and enforcement, which can extend over several months, during which rent arrears can exceed £20,000.

Hanouka noted that many tenants facing eviction have no deposit or assets, making recovery of unpaid rent practically impossible. As a result, landlords are often left with little recourse other than offering tenants financial incentives to leave voluntarily, a strategy Hanouka adopted to avoid further losses.

While he supports the principle of strengthened tenant security, Hanouka criticized the reforms for creating an imbalance favoring tenants who understand the delays in the court system. He warned that this situation shifts the financial burden onto small landlords and may indirectly harm tenants by reducing the availability of rental properties.

Hanouka suggested that the solution lies in adequately resourcing possession courts to handle eviction cases more efficiently, rather than reinstating the former no-fault eviction mechanism. Without such improvements, he believes similar outcomes will persist, undermining the rental market and disadvantaging landlords managing residential properties.