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0:03 AM, 3rd November 2023, About 7 months ago 73
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Angela Rayner has promised to abolish Section 21 straight away if Labour wins the next general election.
In an interview with LBC, the Shadow Housing Secretary answered questions from worried landlords about the removal of Section 21.
Ms Rayner argued that “no-fault evictions are causing misery for people”.
One landlord told the Shadow Housing Secretary that he houses vulnerable people in his properties and the removal of Section 21 will frighten many landlords.
He said: “I specialize in taking homeless people and people from charities who are ex-drug addicts. I take these people on the condition that they get one chance, they can’t mess it up.
“If Section 21 was abolished I would not be able to take these vulnerable people because I could not get rid of them.”
The landlord emphasised the critical role Section 21 played in his ability to help house vulnerable people.
“I have had instances where I have had to use Section 21 because I’ve had an ex drunk who’s been homeless and after five or six months he’s gone back on booze and I’ve had to go through that process. What happens if I can’t do that anymore?
“I wouldn’t be able to take the risk and take people who are homeless or ex drug addicts from charities and that’s all I specialize in. I ask you will you abolish Section 21?”
Ms Rayner told the landlord that no-fault evictions would be abolished immediately under a Labour government.
“Yes, we would abolish Section 21. I’m being honest with you and I gave you a straight answer. I know that the court system is in a mess at the moment and that needs sorting out.
“There’s so many good landlords out there and they’re frustrated by the current situation and the work you are doing is really important.
“However, on balance, Section 21 is causing misery for a lot of people because it is used to turf people out without any explanation or excuse.”
She added: “We need to make sure there’s a fair balance between renters and landlords and being honest with you I think at the moment it’s much too much towards landlords as opposed to tenants.”
Elsewhere in the interview, one landlord told Ms Rayner scrapping Section 21 would cause chaos in landlords trying to gain back possession of their property.
He said: “Most landlords don’t have an issue renting to any tenant that looks after the property and pays the rent.
“However, if it all goes wrong and the landlord wants their property back, they don’t want to wait nine months and they don’t want to have to spend several thousand pounds.
Ms Rayner interrupted and asked: “Is that why you think so many of these Section 21 notices are implemented and imposed on people at the moment because they are significantly used?”
The landlord argued back saying most landlords don’t issue a Section 21 without a valid reason.
He said: “The main reason a landlord will use Section 21 is because they want a tenant out for a reason.
“The tenant might be in breach of the lease or they are causing a disturbance. Section 8 is going to stop all that and therefore landlords will flee the market or the ones that are in the market won’t let to tenants on lower incomes.
“At the end of the day, a landlord has to know that they can get their property back quickly and efficiently.”
The full video can be seen here
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Russell Cartner
12:23 PM, 4th November 2023, About 7 months ago
Reply to the comment left by Dylan Morris at 04/11/2023 - 11:53
Yes I thought the same thing
Seething Landlord
12:28 PM, 4th November 2023, About 7 months ago
Reply to the comment left by Dylan Morris at 04/11/2023 - 11:53
Yes, sorry, it should be 90,000 between 2018 and 2022! Statistics, eh 😂. Also need to note that many landlords with larger portfolios will have incorporated and dropped out of the data during the same period.
https://www.gov.uk/government/statistics/property-rental-income-statistics/property-rental-income-statistics-2023
Dylan Morris
13:02 PM, 4th November 2023, About 7 months ago
Reply to the comment left by Seething Landlord at 04/11/2023 - 12:28Thanks for the reply appreciated. That makes sense now. Also some unincorporated landlords will have dropped out during that period. Of course what really matters is the net figure.
Monty Bodkin
13:10 PM, 4th November 2023, About 7 months ago
Reply to the comment left by Dylan Morris at 04/11/2023 - 13:02https://www.cbre.co.uk/insights/articles/why-are-landlords-leaving-the-rental-market
This means that, since 2016, a total of 400,000 rental homes have been lost. If sales continue on a similar trajectory, it will equate to a loss of almost 10% of the UK’s private rented households by the end of this year.
But according to Rayner;
"Well, landlords, you know, we've got a countless amount of landlords at the moment"
Seething Landlord
13:21 PM, 4th November 2023, About 7 months ago
Reply to the comment left by Dylan Morris at 04/11/2023 - 13:02
Yes, but incorporated landlords are not included in the data. It's just the number of individuals reporting income from property in their self assessment returns. Entirely agree that it's the net figure that's relevant.
These statistics are also based on actual returns so more reliable than surveys based on data from a small minority such as undertaken by NRLA. I am afraid that the report presents an inconvenient truth for those who claim that landlords are leaving in droves but have nothing to say about the number of new landlords replacing them.
Russell Cartner
13:36 PM, 4th November 2023, About 7 months ago
Reply to the comment left by Seething Landlord at 04/11/2023 - 13:21
Well where I live they have left in droves
Seething Landlord
13:41 PM, 4th November 2023, About 7 months ago
Reply to the comment left by Monty Bodkin at 04/11/2023 - 13:10The notes to the report include "Our calculations on the number of properties sold are based on the net change in buy-to-let lending and new advances in the period. We assume that the property is being sold to repay the loan."
Maybe this is a weakness in the conclusions because (a) the HMRC statistics show that only 45% of individuals reporting income from property are claiming finance costs and (b) at least some of the change in lending will be accounted for by landlords paying off mortgages from their own resources/retained profits rather than selling the properties.
Seething Landlord
13:42 PM, 4th November 2023, About 7 months ago
Reply to the comment left by Russell Cartner at 04/11/2023 - 13:36
Who were the buyers?
Russell Cartner
13:46 PM, 4th November 2023, About 7 months ago
I will write to them, perhaps you could supply there addresses
Seething Landlord
14:30 PM, 4th November 2023, About 7 months ago
Reply to the comment left by Russell Cartner at 04/11/2023 - 13:46I obviously have no idea who they are or where the properties are located but without knowing why the landlords left the market and whether the properties were bought by other landlords or by owner occupiers your statement is meaningless.