‘Blundertruss’ backtracks on moves to end Section 21 abolition plans

‘Blundertruss’ backtracks on moves to end Section 21 abolition plans

14:36 PM, 12th October 2022, About 2 years ago 29

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Private sector landlords will be dismayed to hear that Prime Minister Liz Truss has backtracked on rumoured plans to shelve legislation that would have abolished Section 21 ‘no-fault’ evictions.

Ms Truss performed her latest U-turn during Prime Minister’s Questions today (Wednesday).

That’s when Labour MP Graham Stringer told the chamber that after increasing the cost of borrowing and the cost of mortgages as an act of ‘gross incompetence’, he said:

“But going back on the commitment to end no-fault evictions is an act of extreme callousness.

“Can the Prime Minister reassure the 11 million private renters in this country that she will carry out her commitment to get rid of no-fault evictions?”

Without hesitating, the Prime Minister rose to her feet and replied: “I can.”

Planned abolition of Section 21

The latest turnabout follows a report in The Times that the government was looking to shelve legislation that would have meant the planned abolition of Section 21 would no longer take place.

That led to an outcry from housing organisations with many of them criticising the government and the impact such a move would have on tenants.

The move to stand by the plan to abolish Section 21 follows a pledge that was first made by the Conservatives in 2019 to scrap ‘no-fault’ evictions in their election manifesto.

And in May, the legislation was confirmed in the Queen’s Speech with a new Renter’s Reform Bill that will also see the extension of the Decent Homes Standard to the private rental sector and an ombudsman to help manage disputes between landlords and tenants.

Critics responded quickly to news that the government was still going ahead with its plans to abolish section 21.

‘Government’s commitment to ending Section 21’

The Renters’ Reform Coalition tweeted: “Confirmation of the government’s commitment to ending Section 21 from @trussliz at PMQs is welcome news. But we have more questions.

“When and how? What about the Renters’ Reform Bill that was promised this Autumn?”

Kiran Ramchandani, the director of policy and external affairs at Crisis, told one media outlet that tenants will be ‘breathing a sigh of relief’ after the Prime Minister confirmed the government’s commitment to ending no-fault evictions.”

She added the government must now bring forward the Renter’s Reform Bill to give tenants stability.

‘Keep faith’ with the plan to end ‘no-fault’ evictions’

Meanwhile, it has been revealed that Michael Gove spoke at a Shelter event at the Conservative Party conference last week urging the Prime Minister to ‘keep faith’ with the plan to end ‘no-fault’ evictions.

Mr Gove said, according to a report in The Times, that Boris Johnson was insistent that the planned measure should remain in the 2019 manifesto.

He also said that the government must deliver a level playing field between tenants and landlords and focus on a minority of landlords who do not behave responsibly.


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Comments

17:55 PM, 12th October 2022, About 2 years ago

Presumably there will be exemptions similar to those in Scotland. Does anyone know what happens if you evict in order to sell but it fails to sell? Can you rent it out again?

Whiteskifreak Surrey

18:01 PM, 12th October 2022, About 2 years ago

Reply to the comment left by Freda Blogs at 12/10/2022 - 15:05
Believing the liar Gove is like believing the fairy tales for little children.
I really cannot understand what that horrible person is still doing in the government.
But that is a different story.

Whiteskifreak Surrey

18:03 PM, 12th October 2022, About 2 years ago

Reply to the comment left by Barbaracus at 12/10/2022 - 15:15
There is no hope I am afraid...
Remember Boris the Landlords' friend?
Look what happened.

Beaver

18:10 PM, 12th October 2022, About 2 years ago

Reply to the comment left by Richard Smyth at 12/10/2022 - 16:15
It's an interesting thought although as you say it would require some careful thinking through; if you gave any tenancy any security of tenure beyond the period specified by the tenancy agreement, i.e. some kind of hold over the property, I think you'd devalue the asset itself. And I doubt lenders would lend on it if there was even a sniff of a chance that they couldn't get their money back in a fire sale.

I think it would make more sense to use the tax system to incentivise cheaper renewable energy. At the moment the numbers don't stack up. Not so long ago there was a lot of chat about saving the planet, although that of course was before Putin invaded Ukraine in his special-military-operation-war. But any government that brings in rent controls and rent freezes is doing the opposite of making investment in housing attractive including making investment in renewables unattractive.

Reluctant Landlord

19:25 PM, 12th October 2022, About 2 years ago

Reply to the comment left by Roanch21 at 12/10/2022 - 17:55
yes I would have through so. if you got possession legally with intention (and evidence) to sell then you have complied.

If it doesn't sell you can re rent as anyone else would do.

Dis Belief

22:52 PM, 12th October 2022, About 2 years ago

Reply to the comment left by Roanch21 at 12/10/2022 - 17:55
I thought I’d read somewhere that it couldn’t be re-let for a 3 month period after the eviction. I don’t remember seeing how that would be enforced though, or who could enforce it.

Paul Routledge

8:10 AM, 13th October 2022, About 2 years ago

The problem with kangaroo legislation to stay popular is it is always ill thought out and never considers the consequences of its action, for every action there is a reaction.

When the government bans section 21's landlords will leave the PRS, landlords will not give tenants the benefit of the doubt at referencing and those without 5☆ references will not get a home demand will spiral and rents will rise further, councils will struggle to even talk to landlords about housing vulnerable tenants and all that on top of new legislation rising interest rates etc etc, .

I cannot believe that any government would think that by continually bashing a sector like they do the PRS it will make landlords stay and reinvest to create more housing.

This is a classic example why this country leaps from catastrophe to catastrophe because in order to stay popular government's make disastrous decisions, in this instance landlords won't stay they will walk away, so i say to those short sighted blinkered idiots who want section 21s abolished " be carefully what you wish for"

Michael Kinder

14:15 PM, 13th October 2022, About 2 years ago

Reply to the comment left by Team J at 12/10/2022 - 15:30
I'm with you. I'll be selling one of mine each year now until I'm out and before rising interest rates really start to hurt me. The political establishment is committed to the idea that shafting landlords is good for votes, so that's it. Take the profits, pay the tax and have an easier life!

James Clark

11:10 AM, 14th October 2022, About 2 years ago

I've recently juet got a possession order after going through 10 months of problems with a tennent. I was in two minds whether to rent it again or sell it. This confirms it, it will he sold. I was looking to maybe invest in a few more properties, that's been canned too. The scales have tipped way to far in favour of the renter now.

NewYorkie

13:51 PM, 14th October 2022, About 2 years ago

Reply to the comment left by James Clark at 14/10/2022 - 11:10
I don't blame you. I am in exactly the same situation. I sold one after a £20k hit, and will sell my final one. Don't need the stress!

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