There has always been tension between the competing rights of tenants and landlords. Proposed Section 21 changes will rebalance this relationship in favour of tenants, but they’ll come at a cost.
If you’ve ever rented a property from a bad landlord, you’ll understand the frustrations of inadequate maintenance and the threat of your tenancy being abruptly terminated. Equally, if you’ve ever rented a property to a bad tenant, you’ll understand the frustrations of antisocial behaviour and non-payment of rental income.
Striking a balance between the respective rights of tenants and landlords relies on historic legislation, and nobody is entirely satisfied with the current situation. The Conservatives promised in their 2019 election manifesto to abolish no-fault evictions, but these plans – often referred to as Section 21 changes – have yet to be implemented.
What does Section 21 allow landlords to do?
As defined in the Housing Act 1988, a Section 21 notice of possession is the document landlords give to tenants when they’re preparing to take possession of a rented property. It relies on a county or high court officer executing an order for possession within 14 days of a notice being issued on an assured shorthold tenancy. People routinely use the phrase ‘no-fault evictions’ because landlords don’t need a reason for issuing a Section 21 notice.
What would the proposed Section 21 changes mean?
In a 2022 white paper titled ‘A fairer private rented sector’, the Government pledged to abolish Section 21 evictions, improving the security of tenancies across England and Wales. This would ensure tenants can’t be evicted for spurious reasons – requests for essential maintenance causing landlords to regard tenants as an irritation, for instance. Tenancies can only be ended on specific grounds, and documented evidence will be required that one or more of these criteria has been met.
Does this make life harder for landlords?
Section 21 changes will be counterbalanced by revisions to Section 8 of the Housing Act. Landlords will be able to repossess a property on various grounds, such as wanting to let a relative move in, or choosing to sell the property. These grounds for notice will become mandatory, so the eviction must happen if the landlord can demonstrate any relevant criteria have been met. There will also be stronger powers to evict non-paying tenants, or anyone engaging in antisocial or criminal behaviour.
Are these Section 21 changes certain to happen?
Governments break their promises all the time, so there’s no guarantee the abolition of Section 21 will happen. The National Residential Landlords Association is demanding court reforms before Section 21 is abolished, citing huge court case backlogs and inefficiencies in existing processes. With landlords abandoning this sector and rental prices soaring, the Government may even decide to delay implementation until after next year’s general election.
Where can I get more advice?
At Cloud Estates, we’re highly knowledgeable about the proposed Section 21 changes, and how they might impact the local market. Contact us at any time to discuss your tenancy or property portfolio.
