The Government has announced plans to scrap “no-fault evictions” by consulting on new legislation to abolish Section 21 evictions on 15th April. This will bring an end to private landlords evicting tenants from their homes at short notice and without a good reason.
Evidence has shown that the end of tenancies through Section 21 is one of the biggest causes of family homelessness. Theresa May said tenants should have the rights to feel secure in their own homes. With the new proposed measure, it will create open-ended tenancies and bring greater peace of mind to millions of families who live in rented accommodation. Landlords seeking to evict tenants would have to use the Section 8 process instead, which can be applied when tenants have fallen into rent arrears, created damages in the property or involved in criminal behaviour. Unlike Section 21, tenants are able to challenge Section 8 evictions in court.
Alexandra Morris, Managing Director at MakeUrMove, said: “The decision made by the Government to scrap Section 21 evictions is short-sighted and farcical,” Some landlords have been using Section 21 rules as a way to avoid lengthy court delays when landlords needed to evict tenants quickly when they have fallen into arrears. “Tarring a Section 21 with the ‘no-fault eviction’ name is incorrect as many landlords who heavily rely on the income from their properties use this, as well as the Section 8 notice, to evict tenants for non-payment of rent, antisocial behaviour or the need to sell or refurbish. Section 8 evictions are time-consuming and a lot of money can be lost in this process.”
she said.“I believe that more research needs to be done on the wider issues in the industry before abolishing Section 21,” she said. “Abolishing it before addressing these could leave both tenants and landlords in a worse position. Instead of tinkering with issues, the Government needs to fix them.”
It’s been four years in the making, but this week the Renters Reform Bill has finally been published by the government. Here we will summarise what we know so far, provide insights from industry experts and answer the question - is it such bad news for landlords?
