Renters (Reform) Bill could increase homelessness, warns industry expert

A proposal to abolish section 21 ‘no-fault’ evictions to protect tenants from being unfairly evicted could have the opposite effect, according to a leading industry figure.

The Renters (Reform) Bill proposes to scrap Section 21 notices, which allow landlords to evict tenants without giving a reason.

However, Neil Cobbold, the managing director of PayProp UK, says this could result in more evictions and homelessness for tenants because they would lose their automatic right to council assistance and face a harder time finding new properties.

He points to recent data from the Department for Levelling Up, Housing and Communities, which show that more than 24,200 households served a valid Section 21 notice were due council help in 2022/23.

All evictions would take place under Section 8

However, if Section 21 is scrapped, all evictions would take place under Section 8 of the Housing Act 1988, which requires landlords to prove a ground for eviction, such as rent arrears, antisocial behaviour, or wanting to sell or move into the property.

And PayProp‘s own research reveals that the three most common reasons for a landlord or agent to issue a Section 21 notice will also be eviction grounds under the proposed reforms to Section 8 – which means abolishing Section 21 is unlikely to bring about a big reduction in tenant evictions.

The company says the most common reasons for section 21 are:

• A landlord wanting to sell their property
• Rent arrears
• A landlord wanting to move themselves or a close family member into the property.

Tenants evicted for rent arrears under Section 8

Mr Cobbold also warns that tenants evicted for rent arrears under Section 8 will face a more difficult time finding properties than if they were evicted under Section 21, as they might have a money order judgment against them to repay the rent, which would be a matter of public record.

He says that more than four-fifths of landlords (84%) were unwilling to let to tenants with a history of rent arrears, according to the most recent English Private Landlord survey.

Mr Cobbold said: “Ensuring a stable private rented sector is key.

“Landlords need confidence that they can continue to invest in the sector and regain possession of their properties efficiently through the courts if needed.”

He added: “If landlords leave en masse, then no amount of rental reform will bring down homelessness.”