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Landlords call for fast-track eviction tribunals and top-slicing deals

  • 03/07/2019
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Landlords call for fast-track eviction tribunals and top-slicing deals
Paragon Mortgages’s latest survey found that 39 per cent of landlords want a fast-track housing tribunal if Section 21 evictions are abolished.


The Private Rental Sector (PRS) Trends Report Q2 also discovered that 24 per cent of landlords want a shorter court process for evictions.

The government proposed in April to abolish Section 21 – the no-fault eviction process that was introduced as part of the Housing Act 1988.

Section 21 lets landlords give tenants two months’ notice after the fixed-term element of the tenancy has expired.

The government promised to consultant during the summer about how to improve the process outlined in Section 8 that will be used instead.

Section 8 requires landlords to demonstrate that tenants are in breach of their rental agreement when serving notice.

“The main concern for landlords about moving to Section 8 are about the efficacy of the court process. We see widespread support for a fast-track housing tribunal that can deliver a fair and timely solution for landlords and tenants,” said John Heron, Paragon director of mortgages.

Paragon’s long-standing survey panel of landlords comprises 203 buy-to-let landlords of whom 88 per cent have been residential landlords for more than 10 years.

The latest survey found that 15 per cent of landlords want a guaranteed way to cover their costs in an eviction and seven per cent want to be able to submit evidence online.

A big majority of 84 per cent agreed that the required notice period should be no longer than eight weeks.


Demand for top slicing

Precise Mortgages’s research discovered that 52 per cent of landlords use letting income to boost earnings from a full-time job.

The finding remained true for 32 per cent of landlords with portfolios of 11 to 19 properties, and for 18 per cent of landlords with 20 or more properties.

The lender said this characteristic of buy-to-let (BTL) customers suggested that top-slicing – which enables customers to use earnings and other income to meet BTL loan criteria – is a big opportunity.

“The majority of landlords have other earnings that demonstrate they can meet underwriting standards. Lenders need to reflect this in their product offering,” said Alan Cleary, managing director of Precise Mortgages.

“Top slicing enables landlords to manage their properties as they choose. It gives them greater access to the products and loan sizes they want. Particularly for those who may have been restricted by income-contingent repayment (ICR) requirements in the past,” he added.


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