Section 21 & property managers
In their Fairer Private Rental White Paper, the government has outlined its proposals for the Renters’ Reform Bill.
As part of the proposed reforms, Section 21 would be abolished, and landlords would be able to evict tenants without giving a legal reason.
Private landlords who evict tenants without giving a valid reason are being targeted by the proposed ban on no-fault evictions.
“Removing Section 21 will level the playing field between landlord and tenant, empowering tenants to challenge poor practice and unjustified rent increases, as well as incentivising landlords to engage and resolve issues,” the White Paper says.
What does this change mean for Landlords?
Section 21 will be abolished, so landlords will always need a reason for ending a tenancy, such as selling the property or breaching the agreement.
In addition to curbing unfair evictions, Section 21 would also make it harder for landlords to evict tenants who are causing real problems, such as non-payment of rent.
Landlords currently use Section 21 notices to remove problem tenants quickly, saving them from losses and stress. In the event this route is banned, landlords will have to serve a Section 8 notice before they can recover lost rent. In addition, they will have to wait for the court to process and discuss their case.
Further missed rent payments and court action can lead to financial losses when taking tenants to court.
Increased landlord-tenant disputes would make it even harder for tenants to bring lawsuits for breaching their tenancy agreements, which could increase potential losses.
HM Courts and Tribunals Service (HMCTS), as well as the Ministry of Justice (MOJ), will also work together on introducing a package of “wide-ranging court reforms that will address specific problems that frustrate possession procedures and hold them up”.
What does this change mean for tenants?
BBC reports that many renters have been evicted from their homes without warning after receiving a Section 21 no-fault eviction notice. In order to afford the rent, most renters receiving these notices have had to move.
Getting rid of Section 21 would make it impossible for tenants to be evicted without a reason and require them to move in a short period of time.
The tenant can end the tenancy at any time by giving the landlord two months’ notice.
Renters would be protected from unfair and sudden evictions by landlords, such as those evicted for complaining about faulty appliances and fixtures, giving them peace of mind.
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