Landlord activity surges in March as possession instructions rise 60% year-on-year

Faced with a lack of flexibility and the prospect of more complex and protracted possession routes, landlords are acting now while existing options remain available.

Some landlords are effectively feeling pushed into serving notice earlier than they otherwise would as the 1 May deadline approaches, bringing forward decisions that are inevitably affecting tenants through no fault of their own.

The sharp increase seen in March is not an isolated spike, but part of a clear shift in landlord behaviour that has been building since the start of the year. Possession instructions for the first quarter are up 32% year-on-year, with enquiries rising by 23%.

What is particularly significant is that instructions are increasing at a faster rate than enquiries. Landlords are no longer just exploring their options, they are now making firm decisions and acting more quickly where previously many had held back.

The figures also highlight just how heavily the sector still relies on Section 21 and the scale of the challenge that lies ahead.

Over the past year, Section 21 has consistently accounted for the majority of Landlord Action’s possession cases each month, and that dominance has only become more pronounced. In March alone, Section 21 was used at almost three times the rate of Section 8, with Section 21 instructions rising by 43% year-on-year in Q1. 

This represents a substantial volume of cases that, once Section 21 is removed, will inevitably be forced through the Section 8 route and into the courts, many of which would not previously have required court intervention.

While the current spike reflects landlords acting ahead of reform, the underlying trend points to sustained pressure on the system. Even if only a proportion of these cases transition into Section 8 claims, it will place significant additional strain on a court system that is already stretched.

In practical terms, what is currently a largely administrative process will become a court-driven one, bringing longer timelines, greater complexity and increased uncertainty for both landlords and tenants.

Paul Shamplina, Founder of Landlord Action, comments:

“This is exactly what we said would happen. As Section 21 is phased out, landlords are acting now while they still have certainty, because many are not confident in what replaces it.

From the conversations I have been having with landlords across the country, there is still a great deal of confusion about how possession will work in practice, alongside growing concern about compliance, court delays, rent arrears and rising mortgage costs. That combination is pushing landlords into making decisions earlier than they otherwise would.

Some landlords are choosing to exit the sector altogether, while others are regaining possession now rather than risk being unable to do so later. While possession activity will inevitably slow once these changes come into force, much of the damage will already have been done.  Good landlords leaving the market and tenants losing homes in circumstances where, previously, no action would have been taken.”