The most recent statistical analysis of the work and the case load of the First-tier Tribunal: Housing and Property Chamber (HPC) which covers the period 1 April 2022 to 31 March 2023 has been released recently and makes interesting reading. The full publication can be found here.
What volume of cases were received?
The HPC received 4596 cases received during this period. This represents a 37% increase in cases received in the previous year which was the subject of a previous blog (which can be found here). Whilst this is a significant increase on the previous year’s figures, it is understood that for the year 1 April 2023 onwards the expectation is that the eventual amount of cases received could end up being in excess of 6,000. The way cases are dealt with by the HPC does arguably artificially inflate the numbers (a claim for eviction and a claim for rent arrears are classed as 2 separate applications, which would not have happened in the court system), but that does not explain the increased numbers in itself. The HPC also managed to “close” 4001 applications during the same period with 1757 carried over from previous years and 2352 cases carried forward into the next year (1 April 2023 to 31 March 2024).
What are the main types of cases that are received?
There are a large number of potential applications that can be raised at the HPC, but the “big 3” are:
- Eviction/possession claims (2252 applications).
- Civil claims (1250 applications).
- Tenancy Deposit Claims (260 applications).
The 2252 eviction/possession cases received made up 84% of all HPC applications received. That is 80% higher than the previous year (1251 cases) which made up only 49% of applications received that year – so a large spike in numbers.
Why has there been a large increase in eviction/possession claims?
The statistical analysis does not give much detail as to why that may be the case, although it does postulate that the various changes arising from the previous COVID rules may be partly responsible. However, these numbers are still 29% higher than the pre-COVID figures, so something else appears to be driving these increased numbers.
Maybe an answer to this puzzle can be found when looking at the civil claim numbers.
These account for 27% of cases (usually arrears but can be damages and other claims by landlords or tenants). Whilst the number of such applications was slightly higher than the previous year, as a percentage of the total applications, there was a significant drop from 33% to 27%. So, what we see from this analysis is a further significant increase in eviction cases with no corresponding increase in civil claims. The HPC does not provide information on the eviction/possession grounds used, but it does point to evictions being sought on non-arrears grounds such as landlords selling the property or seeking to move into the property.
How many eviction cases were dealt with and what happened with them?
Of the 2252, most eviction/possession claims were withdrawn (827 or 53%). Usually this is because the tenant has vacated. 262 were rejected or dismissed (for example no jurisdiction or failure to cooperate). Where cases went to a determination by the HPC 718 or 91% were granted.
What about other types of applications?
There is a similar picture with civil claims in that, where such cases go to a determination, 94% are granted. The number of tenancy deposit claims received actually fell by 13%, but of the applications that proceeded to a determination 89% resulted in an order being made against a landlord. In terms of repairing standard applications, only 68% ended up with a repairing standard enforcement order. Interestingly, there are still very few applications under the letting agent code of practice with only 67 being received and only 11 of which ended up with a finding that the letting agent had failed to comply with the code of practice. This is way below the 240 applications that were expected by the Scottish Government.
At what stage do cases get dealt with?
Whilst most of those who deal with the HPC feel matters could be dealt with more quickly, 90% of eviction/possession cases are dealt with at a Case Management Discussion, which is usually the first procedural hearing for the application and usually dealt with by way of conference call, and only 10% go to an evidential hearing where witnesses will be required, which is quite a small number.
Summary
Overall, with the number of applications rising year on year particularly for non-arrears based evictions, it is hard not to come to the conclusion that the Scottish Government significantly underestimated the number of cases that the HPC would deal with on an annual basis or the impact that the various legislative changes they introduced over the past few years would have on the enthusiasm landlords and investors would have for the sector as a whole.
If you require any further information or advice, please contact us or watch our blogs for further updates.
