Section 21 ban could overwhelm courts – Propertymark
An industry body is warning the government that banning Section 21 could overwhelm the court system.
According to Propertymark, the abolition of Section 21 will be the ‘final nail in the coffin’ for many landlords due to costs and lengthy court delays.
The Labour government also plan to introduce Awaab’s Law to the private rented sector and make bidding wars illegal.
More hostile to landlords
Propertymark suggests that banning Section 21 could exacerbate supply and demand issues and drive up rents for tenants.
In December 2023, Propertymark submitted written evidence to the Public Bill Committee about the Renters (Reform) Bill.
They cited data highlighting the anxiety among member agents about measures that could make the private rented sector more hostile to landlords and lead to unintended consequences for those in desperate need of housing.
The industry body is calling for an adequate replacement mechanism to be in place before Section 21 is abolished.
Nathan Emerson, chief executive officer at Propertymark, said: “The Renters’ Reform Bill brought a great deal of uncertainty to landlords, letting agents, and tenants, so it is vital that the UK government’s fresh legislation to remove Section 21 guarantees that it is being replaced with a suitable legal mechanism that prevents a backlog of cases to the courts.
“Any new Bill must strike a balance between protecting tenants’ rights and ensuring that landlords have a suitable legal mechanism to repossess properties when necessary.”
Labour will abolish no-fault evictions
In her first speech as Chancellor Rachel Reeves “promised to finally get rid of no-fault evictions” and confirmed Energy Secretary Ed Miliband and Housing Secretary Angela Rayner will lay out plans on energy-efficiency targets for social housing.
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Council seeks more landlords to fight homelessness
Member Since December 2023 - Comments: 1587
9:54 AM, 12th July 2024, About 2 years ago
Courts won’t be overwhelmed. They’ll just have a long waiting list.
Councils will be overwhelmed by pleas for help from people that they are legally obliged to help.
When immigration officials are overwhelmed, they just say ‘Yeah, you can stay’ or ‘That’s a lovely copy of an application for asylum form, you’re in’.
Member Since June 2019 - Comments: 4
10:31 AM, 12th July 2024, About 2 years ago
I forsee a death loop here for the PRS. High interest rates plus sec
24 creates losses leading to sell offs and consequential depressed property values. Landlords that hang on cannot refinance their properties at the lower values and are, in turn, forced to sell. Lower rates may arrive too late now to prevent this cycle.
Member Since September 2018 - Comments: 3538 - Articles: 5
11:27 AM, 12th July 2024, About 2 years ago
Reply to the comment left by Cider Drinker at 12/07/2024 – 09:54
on the flip side good tenants (unfortunately for them) will have no choice than to stay put where they are as there won’t be anything else available to move into. Stability of rental for those LL’s left in the game.
For everyone else (as it already is) there will be a fight for what limited supply there is left. LL’s will be able to pick from the best candidates so the rest will be left behind.
Maybe that will be default raise the quality of T’s, and make them think very carefully of how they behave when in a rental?
As the PRS has ALWAYS said…if the tenant pays in full, on time and looks after the property then there is no reason to ever ask them to leave….
Member Since May 2017 - Comments: 765
12:32 PM, 12th July 2024, About 2 years ago
Why would councils worry about court delays? It puts off having to house those asked to leave
Member Since September 2023 - Comments: 335
2:18 PM, 12th July 2024, About 2 years ago
What a complete …. up more like a third world state no social housing draconian rental laws, increased legislation, taxes , an absolute disaster comming our way but hey ho the establishment has been warned for decades.
Member Since March 2022 - Comments: 365
3:41 PM, 12th July 2024, About 2 years ago
Reply to the comment left by JB at 12/07/2024 – 12:32
And with section 21 gone there will always be a reason for any eviction. So any arrears or antisocial property damaging tenants will be deemed to have made themselves homeless so the Council does not have to help them.
Member Since May 2017 - Comments: 765
4:06 PM, 12th July 2024, About 2 years ago
Reply to the comment left by northern landlord at 12/07/2024 – 15:41
They will have to house those evicted due to the LL wanting to sell – but they can spin it out for months before they need to do it. So on that front and not having to house those in arrears and anti-social, could save the council a lot of money.
Maybe, tenants will learn to behave properly!
Member Since May 2023 - Comments: 225
7:51 PM, 2nd August 2024, About 2 years ago
Served and completed Section 21 on my last property so abolition no longer an issue. Homeless people not my responsibility.
Repairs and restoration to a condition fit for human habitation starts now, at my expense, obviously. No, 5 weeks rent has no relation to the damage caused by tenants failing to uphold their responsibilities.
So that’s yet another property out of PRS, and very unlikely to go back.
Well done Sh##er, who house nobody.