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10:10 AM, 23rd October 2023, About 7 months ago 22
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The Government has confirmed that it will not abolish Section 21 ‘no-fault’ repossessions until it improves the court system for handling legitimate possession cases by landlords.
And student landlords will be pleased to hear that there will be a new ground to repossess properties annually to protect the student housing market.
The Renters (Reform) Bill, which will be debated by MPs today (Monday 23 Oct), proposes to scrap section 21 and replace it with a strengthened section 8, which requires landlords to provide a valid ground for eviction, such as rent arrears or anti-social behaviour.
However, the National Residential Landlords Association (NRLA), which represents more than 90,000 landlords in England and Wales, has warned that without faster and more reliable court processes, scrapping section 21 would deter responsible landlords from renting out their properties, exacerbating the housing supply crisis that renters already face.
According to the NRLA, it takes an average of over six months for the courts to process possession claims where landlords have good cause to evict tenants.
The organisation has been campaigning for a dedicated housing court or tribunal to deal with such cases more quickly and fairly.
In response to a report from the House of Commons Housing Select Committee, which supported the NRLA’s concerns, the Government has agreed that it will not implement the new system for repossessing properties ‘until we judge sufficient progress has been made to improve the courts’.
It added: “That means we will not proceed with the abolition of section 21, until reforms to the justice system are in place.”
The Government has also accepted the NRLA’s suggestion for a new ground for possession that would protect the annual cycle of short-term student tenancies.
The NRLA had argued that by scrapping fixed-term tenancies, neither landlords nor students would have any certainty that properties would be available to rent at the start of each academic year.
The Government said it would ‘introduce a ground for possession that will facilitate the yearly cycle of short-term student tenancies’ which ‘will enable new students to sign up to a property in advance, safe in the knowledge they will have somewhere to live the next year’.
The NRLA’s chief executive, Ben Beadle, said: “Reform of the rental market will only work if it has the confidence of responsible landlords every bit as much as tenants.
“This is especially important given the rental housing supply crisis renters now face.
“Following extensive campaigning by the NRLA, we welcome the approach taken by ministers to ensure court improvements are made before section 21 ends.”
He added: “The Government is also right to protect the student housing market.
“However, more is needed to ensure student landlords are treated the same as providers of purpose-built student accommodation.
“We will continue to engage positively with all parties as the Bill progresses through Parliament.”
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Ian Narbeth
14:49 PM, 23rd October 2023, About 7 months ago
Reply to the comment left by Luke P at 23/10/2023 - 14:17
They are losing the Shelter/Generation Rent types because the whole thing has been handled ineptly by the Government and because Tories have parroted the nonsense about s21 causing homelessness.
Having promised to abolish s21, the Tories are waking up to the fact that doing so will hurt everyone.
The NRLA have been useless as they support its abolition in principle.
Obvious question: "If s21 is so terrible, was it always so?" Obvious answer: "No, it created a viable flexible rental market."
student landlord
20:07 PM, 23rd October 2023, About 7 months ago
Does anybody know if the issue of fixed term tenancy abolition was debated/delayed/cancelled/passed? For student landlords (and students) this is even more of a potential threat than section 21 although I fully respect that different sectors of our community are affected by different challenges and issues. Any updates would be appreciated by those of us that are student landlords as I can't find any reference to it in the news.
reader
21:19 PM, 23rd October 2023, About 7 months ago
All this talk of rectification of a useless court system is merely a distraction to divert legitimate concerns over the loss of S21.
Also the concept of if any problems have been fixed is going to be determined not by the users of the courts but by the government itself. So they will merely offer us landlords a placebo of a fix, then say we have fixed it despite doing very little at all.
If the government were sincere they would have fixed the courts before passing the legislation. S21 is now dying so will the tenanted housing market.
Stella
22:27 PM, 23rd October 2023, About 7 months ago
Reply to the comment left by at 23/10/2023 - 21:19
Having listened to most of the second reading I feel if some of their suggestions are passed into law they would be unworkable.
Contrary to what Rachel Maclean claims that from her research that Landlords would not leave the sector I see nothing in this bill that will stem the exodus.
Dylan Morris
9:29 AM, 24th October 2023, About 7 months ago
A dysfunctional court system is exactly what they want. Anything that helps keep tenants in their homes is a good thing.
Reluctant Landlord
9:45 AM, 24th October 2023, About 7 months ago
why did S21 come in in the first place? It was clearly welcome for a reason to address a need - so what changed so its become so toxic?
The lack of housing/accommodation has caused a situation where housing has become political. No other reason. Now legislation is being pushed to address a situation that is nothing to do with the PRS - more of housing issue in general.
Ian Narbeth
9:58 AM, 24th October 2023, About 7 months ago
Reply to the comment left by Reluctant Landlord at 24/10/2023 - 09:45
That's exactly the point I have been making. We have had s21 for 35 years. It opened up a stultified rental market. I think Gove has swallowed hook, line and sinker the dodgy arguments put forward by Shelter and Generation Rent. Things are getting bad for tenants because of the fear landlords have of section 21 being abolished. Just wait until it is abolished.
Dylan Morris
10:05 AM, 24th October 2023, About 7 months ago
Reply to the comment left by Ian Narbeth at 24/10/2023 - 09:58
Just look at Scotland !!
Stella
10:33 AM, 24th October 2023, About 7 months ago
Reply to the comment left by Dylan Morris at 24/10/2023 - 10:05
Just look at what happened in Ireland.
So many landlords have sold up that it is hitting business investment.
They are now trying to attract Landlords back but it is not working.
Every time I go there I see homeless people and this is a country where the population is only about 5 million.
Blodwyn
11:56 AM, 28th October 2023, About 7 months ago
Really? Does 'Court Reform' really mean undoing all the damage done over the decades
by successive Labour and Conservative Governments to a system that was once the envy of the world? Restore local courts, appoint more judges and magistrates, let judges, magistrates and properly trained and happy motivated court staff do their jobs, properly? Institute properly funded, audited and professionally controlled Legal Aid to afford justice to all, equality of arms and a level field?
Strike me down with a feather? Fairies do really (repeating...??) dwell at the bottom of my garden, oh!! That pink pig had wings!!!!!!!!