Section 21 ban could trigger eviction surge – Expert

Section 21 ban could trigger eviction surge – Expert

9:15 AM, 25th September 2024, About a month ago 8

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A proposed ban on Section 21 ‘no-fault’ evictions under the Renters’ Rights Bill could lead to a ‘spate’ of evictions, one expert warns.

The assistant director of housing at Manchester City Council, Rob McCartney, told the Local Government Chronicle that the situation for housing evicted tenants was going to get worse.

He said that landlords who don’t want to give tenants an assured tenancy will lead to a spike in evictions as those landlords act before the Bill becomes law.

‘Going to see a spate of section 21s’

Speaking at a Centre for Homelessness Impact event, Mr McCartney said: “The abolition of section 21 is going to have such a positive impact on homeless services, but in the interim period, I think we’re going to see a spate of section 21s for landlords who don’t want to give assured tenancies to their existing tenants.

“It’s going to be tougher for us in the next few months in the run-up to the abolition, but it’s going to be such a fantastic change for homeless services.”

Temporary accommodation in England

The event was organised to discuss a report by the organisation entitled ‘Impact on Temporary Accommodation in England’.

The report found that some local authorities use funds such as the homelessness prevention grant to subsidise the cost of temporary accommodation, meaning less money is spent on targeted support before people become homeless.

It also concluded that some councils use local authority and housing association stock as temporary accommodation, potentially lengthening waiting lists for social housing.

Households reported as homeless

The report was published after data published by the Ministry of Housing, Communities & Local Government (MHCLG) revealed a 5.7% increase in households reported as homeless or at risk.

Among those, 6,630 households were served a section 21 notice, which is a 1.2% increase from the previous year.

Matthew Wilkins, the centre’s head of value for money, said: “Our work with councils suggests that it may be possible to respond with greater agility to demand for temporary accommodation through an improved use of data and strategic planning.

“Our report therefore recommends that local authorities should review the data they hold and use on temporary accommodation, including on the reasons why people become homeless in the first place.”


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Cider Drinker

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9:25 AM, 25th September 2024, About a month ago

FWIW, I believe that a significant number of landlords could look to exit the sector before the ban comes in.

It’s not just the loss of Section 21 that poses an additional risk to the PRS.

Massive and wholly disproportionate fines for even minor breaches of the rules. Imagine being fined £40k because you couldn’t afford a new kitchen costing upwards of £15k when the old kitchen was perfectly fine but just old. Worse still if the property is only valued at £80k and the rent is £400 pcm.

Slum landlords really should get out now. Good landlords may also be best advised to revisit their risk assessments.

Cider Drinker

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9:32 AM, 25th September 2024, About a month ago

Section 21 will not help with the homelessness numbers.

Every tenant protected by the abolishing of Section 21 means another wannabe tenant is denied a home.

There are only so many houses.

NewYorkie

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9:49 AM, 25th September 2024, About a month ago

What was the purpose of this article?

'...it’s going to be such a fantastic change for homeless services.' How?

JaSam

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9:51 AM, 25th September 2024, About a month ago

My view is this is more likely to happen with HMO's.

DPT

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11:40 AM, 25th September 2024, About a month ago

I have read that Ministers at the Labour Party conference have indicated that once the RRB is passed into law, they will clear out all s21 court applications that haven't yet resulted in a possession order. Given that it commonly takes 8 months to get a court hearing from a standing start, this suggests that even if landlords serve a s21 notice today, some will not be in time for the process to complete.

havens havens

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14:07 PM, 25th September 2024, About a month ago

I think banning Section 21 no-fault evictions is a great step forward for protecting tenants. I see how it might lead to some landlords rushing to evict tenants before the law changes, which could cause a rise in homelessness. Personally, I believe councils need to be proactive, using better data to identify tenants at risk and provide support early on. It’s also important to invest in more resources to prevent evictions before they happen, rather than just relying on temporary housing solutions.

NewYorkie

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14:11 PM, 25th September 2024, About a month ago

If the people of this country can no longer rely on an Act of Parliament with certainty, and until it is repealed or amended, they will have destroyed Parliamentary democracy.

PAUL BARTLETT

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18:13 PM, 25th September 2024, About a month ago

Reply to the comment left by Cider Drinker at 25/09/2024 - 09:25
"Imagine being fined £40k because you couldn’t afford a new kitchen costing upwards of £15k when the old kitchen was perfectly fine but just old."

The LA run Licensing scheme allows each LA to define their own standard that must be complied with. Thus it's already possible to be fined tens of thousands because you can't get a tradesman available to work at a price that the property justifies.

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