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How might Government changes to section 21 affect landlords and tenants?

How might Government changes to section 21 affect landlords and tenants?

Section 21 is the process by which landlords have traditionally been able to facilitate a "no fault" eviction. This has effectively enabled tenants to be removed fairly quickly from a property without the requirement for there to be any specific reason for the eviction. However, Section 21 is now set to be abolished in a move that the government has said is designed to protect private renters. But what impact is this really likely to have on landlords and tenants?

Section 21 - the basics

A Section 21 notice was designed to be served by a landlord on a tenant after a fixed term tenancy has ended - where there is a written contract - or during periodic tenancy, where there is no fixed end date. Usually, Section 21 requires that the tenant is given at least eight weeks' notice. Many landlords use this section of the Housing Act 1988 to evict tenants who are problematic or to remove tenants quickly from a property that they either wanted to sell or move into.

Why the abolition of Section 21?

Many campaigners claimed that the fear of being evicted meant that tenants were often reluctant to complain about issues or to fight rental increases. Research carried out by Citizens Advice backs this up, as tenants who made a complaint about a property had a 46% of being evicted. Removing Section 21 effectively means that tenants will have more security and certainty when it comes to their tenancies and landlords will now need to have a reason to evict.

How will this affect landlords?

The main change is that there needs to be a solid reason to evict a tenant before proceedings can be started to end the tenancy agreement. This will undoubtedly make the lettings market a little less flexible and may mean that landlords require more professional support when handling tenants e.g. from a managing agent. The National Landlords Association has said that it believes abolishing Section 21 could create chaos in the courts and make it a lot more difficult for landlords to reclaim their property even if a tenant is in breach of the tenancy agreement. However, the government has insisted there will be a focus on expediting court processes in which landlords are trying to evict tenants to ensure that this can still be achieved where necessary.

How will this affect tenants?

There will no longer be the threat of eviction at any time for tenants to deal with. This should make life more secure for tenants.

As letting agents in Hackney we understand the impact that the abolition of Section 21 is likely to have and we're ready to guide our landlord clients through it. As a result of the law change it's going to become more important than ever to ensure that you find the right tenants and that relationships remain positive - something that we can help you to achieve. Contact us to find out more.

17 October 2019Written by Andrew Blythe

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