One in four landlords will sell-up if ‘no fault’ evictions are abolished

Government plans to abolish controversial section 21 ‘no fault’ evictions could lead to a quarter of landlords selling their property, research reveals.

A poll of more than 700 landlords gauged reactions to the government’s ‘Fairer Private Rented Sector’ white paper, which sets out a range of proposals – from removing ‘no fault’ evictions and the creation of a landlord register.

The findings from The Mortgage Works highlights that just 22% of landlords were supportive of the proposal to abolish ‘no fault’ evictions.

And if section 21 was abolished, more than half (56%) of landlords admit they will be more particular about the tenants they accept.

This is an especially prevalent view amongst those landlords with larger portfolios with 62% of those with 20 or more properties saying they will be more particular.

Landlords admit they will sell some, or all, of their properties

Perhaps more concerning is that a quarter (25%) of landlords admit they will sell some, or all, of their properties if this proposal happens.

That rises to nearly a third (32%) of those landlords with large portfolios of 20 or more properties.

When asked about the proposed national landlord register, 62% of landlords are supportive of it, while 32% oppose the idea.

Part of the lack of support may be because more than half of landlords (53%) do not believe introducing a register will have any impact in deterring criminal landlords.

That rises to two thirds (66%) of landlords with 20 or more properties.

Landlord support for the Decent Homes Standard

According to the poll, the one area that most landlords were supportive about was on proposals for the Decent Homes Standard to cover private rental properties, with 83% of landlords supportive.

More than two-thirds (68%) of those polled believe their properties already meet the new standard.

However, of those that will need to undertake work to bring the property up to standard, 56% would use their savings to fund that work.

Around a third (33%) admit they will be putting up the rent to improve the property if the minimum standards are brought in.

‘Improving standards within the private rented sector’

Dan Clinton, the director of landlord at The Mortgage Works, said: “We believe everyone should have a safe, secure and comfortable home, which is why we are committed to improving standards within the private rented sector.

“The proposals outlined in the Government’s white paper should serve to have a positive impact on housing quality and conditions for tenants.”

He added: “While landlords appear to be largely in favour of a national landlord register and Decent Homes Standard, it is revealing that one in four would consider selling in the event of Section 21 being abolished.

“This highlights the importance of listening to landlords’ concerns as these policies take shape, particularly when considering the broader set of regulatory changes already affecting them.

“A mutually beneficial private rented sector needs to offer tenants the security they will not be evicted without good reason, yet also provide landlords the confidence they can gain possession of a property quickly and efficiently if something does go wrong, such as anti-social behaviour.

“As a buy-to-let lender, we are keen to understand how the changes will be implemented, to ensure we fulfil our role of helping to balance the needs of landlords as well as tenants.”