Section 21 ban risks hurting tenants

by Property 118

7:00 AM, 15th April 2019
About 4 months ago

Section 21 ban risks hurting tenants

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Section 21 ban risks hurting tenants

PRS warns of “serious dangers” to the supply of rental housing for vulnerable tenants as a result of government plans to axe Section 21.

The Government is proposing a consultation on the abolition of Section 21, so called  ‘no fault’, repossessions in the private rented sector in favour of improving the court system to ensure landlords can more speedily repossess properties through them in legitimate cases.

David Smith, Policy Director for the Residential Landlords Association said:

“Whilst the RLA recognises the pressure being placed on Government for change, there are serious dangers of getting such reforms wrong.

“With the demand for private rented homes continuing to increase, we need the majority of good landlords to have confidence to invest in new homes. This means ensuring they can swiftly repossess properties for legitimate reasons such as rent arrears, tenant anti-social behaviour or wanting to sell them. This needs to happen before any moves are made to end Section 21.

“For all the talk of greater security for tenants, that will be nothing if the homes to rent are not there in the first place. We call on the government to act with caution.”

Government data shows that on average tenants live in their rental properties for over four years and that in 90 per cent of cases tenancies are ended by the tenant rather than the landlord.

The Residential Landlords Association is warning that at a time when the demand for rental homes is outstripping supply, especially among vulnerable tenants, the Government risks exacerbating the problem if it does not ensure that landlords have complete confidence that they can repossess properties swiftly for legitimate reasons. These include tenant rent arrears, tenants committing anti-social behaviour and landlords wanting to sell their properties.

With the Government’s own data showing that it takes over five months from a private landlord applying to the courts for a property to be repossessed to it actually happening, the RLA argues that it is vital that a reformed and improved court system is able to bed in and the grounds to repossess properties are properly improved before making changes to Section 21. This would follow the lead set in Scotland.

Research by Manchester Metropolitan University for the RLA has found that in a large majority of cases where tenants are asked to leave their properties under Section 21 notices there is a clear reason. Half of the notices are used where tenants have rent arrears, are committing anti-social behaviour or damage to the property. Other common reasons include the landlord needing to take back possession of a property for sale or refurbishment.  The report’s authors argue that this “raises questions” about whether the use of Section 21 notices can properly be described as ‘no fault’ evictions, as some have called them.

The RLA will shortly be consulting the landlord community to establish what measures would be needed to ensure they have confidence in the system before efforts are made to end Section 21 repossessions.



Comments

david porter

8:09 AM, 15th April 2019
About 4 months ago

After finance act 2015 , now this.
This will be nothing more than a lawyers benefit.

Gary Nock

8:18 AM, 15th April 2019
About 4 months ago

Prepare for another Landlord exodus.
"A Ministry of Housing spokesman said: "Court processes will also be expedited so landlords are able to swiftly and smoothly regain their property in the rare event of tenants falling into rent arrears or damaging the property - meaning landlords have the security of knowing disputes will be resolved quickly."

"Rare Event". What planet are these idiots on?

Get ready for a General Election folks -looks like agent / landlord bashing time to get the Generation Rentflake vote.

Old Mrs Landlord

9:12 AM, 15th April 2019
About 4 months ago

David Smith, RLA, makes the point I have often made in the past that a would-be tenant's first need is a landlord to rent from and the government seems to have lost sight of this incontrivertible fact. Every change in regulation in recent years has made it more and more onerous and challenging to provide private rental accommodation, yet at the same time less and less profitable. If they had more than one brain cell between them they might be able to see the inevitable result of their actions. If there are any landlords left at the end of this ill-advised meddling, will lenders be willing to lend to them or rent guarantee insurers to provide cover for open-ended tenancies?

Gary Nock

9:37 AM, 15th April 2019
About 4 months ago

Reply to the comment left by Old Mrs Landlord at 15/04/2019 - 09:12
Drip, Drip,Drip goes the legislative burden and accompanying rhetoric. Short term gain for Generation Rentflake votes. Long term pain for tenants with less choice and higher rents. Until rent controls are introduced. Then landlords won't be able to buy because of stamp duty, won't be able to make a profit due to Section 24, tenant fee ban and Rent Controls, and won't be able to sell because of Section 21 abolition. Tipping point is about to arrive if it hasn't already. Those of you who have played Jenga and Ker Plunk will know what I mean when we talk about the total collapse of the PRS.
Will the last landlord out please turn out the lights.

dismayed landlord

9:56 AM, 15th April 2019
About 4 months ago

well she is doing great job on Brexit!! I was going to sell off on the basis of one per year and or natural 'wastage' - as they became empty probably sell at one per year. This changes it. Serve everyone section 21 notices whilst I can and sell asap regardless of CGT. My health now and my children and grandchildren in the future will not then inherit this PRS burden. I may even get to be a full time grandfather. Point to note - last year we were instructed by the judge not to pursue the eviction under section 8 but to use section 21. Her reason being that she did not want the mother and 3 kids to be pursued for the rent arrears. I agreed just to get them out after 10 months. Actually I would have agreed to almost anything by that stage just to sleep at night.

Whiteskifreak Surrey

10:13 AM, 15th April 2019
About 4 months ago

Guardinan runs an article on the issue: https://www.theguardian.com/society/2019/apr/13/trapped-britain-new-slums-poverty-austerity-social-housing
As usual LL bashinng, but they mention briefly a burden of S24.
"Exclusive analysis of official figures by the academic duo at the forefront of research into the private rental sector, Julie Rugg and David Rhodes, shows that 90% of the 1.4 million households renting on low incomes in England are being put at risk by harmful living conditions and/or pushed further into poverty and possible eviction by rents they cannot afford."
I wonder if that 1.4 million figure is correct.

Gromit

10:32 AM, 15th April 2019
About 4 months ago

And where will all the Tenants live when all the private Landlords have sold up and left the market?

Expect a massive spike in evictions in the run up to s.21 being abolished, and a similar spike in homelessness as there will be nowhere for these Tenants rent.

Gary Nock

10:57 AM, 15th April 2019
About 4 months ago

The marxists in all parties have got their way. "Property is theft blah blah blah" lets run the country like Venezuala.
https://money.cnn.com/2017/07/26/news/economy/venezuela-economic-crisis/index.html

Judith Wordsworth

10:59 AM, 15th April 2019
About 4 months ago

I believe that S21 is not applicable to "temporary non secure tenancies", ie tenancies of less than 6 months ie 5 months and only have to give a 4 week Notice to Quit.

So let's all on renewal provide Temporary Non-Secure Tenancies only. I am seriously considering doing this in future on renewal. Yes a bit more paperwork and effort getting tenancies signed but worth it.

A friend who is renting has a "Temporary Tenancy Agreement" from her Landlord for this very reason.

If its ok for a local council to produce these then must be legal lol
https://www.tendringdc.gov.uk/sites/default/files/Non%20secure%20tenancy%20agreement.pdf

Presume could not just set it up as a weekly but monthly or bi-monthly or even quarterly periodic temporary non secure tenancy I would have thought to save on paperwork. But then weekly might be better as only having to give the 4 week Notice to Quit.
Having found this tenancy agreement I will be altering mine to incorporate some of its clauses eg if tenant doesn't notify of a repair then the cost of the repair is their responsibility.

Judith Wordsworth

11:03 AM, 15th April 2019
About 4 months ago

Reply to the comment left by Judith Wordsworth at 15/04/2019 - 10:53
Sorry was running 2 different postings on same issue at the same time. The above was a reply on another thread to my original posting of:-

I believe that S21 is not applicable to "temporary non-secure periodic tenancies", ie tenancies of less than 6 months and only requiring a 4 week Notice to Quit.
So let's all on renewal provide Temporary Non-Secure Tenancies only. I am seriously considering doing this in future on renewal. Yes a bit more paperwork and effort getting tenancies signed but worth it.

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