Tag Archives: section 21

Using a section 21 should not be considered a Revenge Eviction Landlord Action, Landlord News, Latest Articles

I would like to provided clarity over what constitutes a Revenge Eviction, and what is simply a landlord serving notice without giving a reason, after concerns have been raised that the term was being misused in the media, giving good landlords a bad name.

The Citizens Advice Bureaux (CAB) recently revealed that twice as many people had reported problems with being evicted, despite not being in arrears, in the first quarter of 2014 compared with the same period in 2013. Whilst this correlates with the rise in landlords wishing to evict under Section 21 accelerated possession proceedings (36,000 in 2013) I am keen to stress that this is not Revenge Eviction, but simply a change in the Buy to Let market which is being driven by increasing sale prices and a lack of social housing. This year Landlord Action has seen a record rise in accelerated possession proceedings from landlords being forced to evict, because tenants want to be re-housed by the council.

Revenge or Retaliation eviction was a term recently coined to describe a minority of rogue landlords taking advantage of the system and issuing a Section 21 notice to rid themselves of tenants, instead of carrying out disrepair works. This is something which the Government is looking to address at a later date.

However, this should not be confused with a landlord’s right to exercise a Section 21 notice simply because they would like their property back. The housing market is strong at present and naturally many landlords, a large percentage of which were accidental landlords in the first place, have decided that now is the time to cash in their chips. For others, personal circumstances may have changed meaning they now require the rented property to live in themselves.

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Paul Shamplina Landlord Action

Section 21 update – Spencer v Taylor Landlord News, Latest Articles, Legal, Letting

As reported by Nearly Legal concerning section 21 rules the tenant in Spencer v Taylor has been refused permission to appeal in the Supreme Court, because of the lack of an arguable point of law.

Therefore the Court of Appeal decision stands:

“Where an assured Shorthold tenancy has had a fixed term and a statutory periodic tenancy has arisen, there is no requirement to use a section 21 (4)(a) notice, or have a date of expiry at the end of a period of the tenancy. A section 21 (1)(b) notice with two clear months notice is adequate.”

To summarise:

If a tenancy has at some stage had a fixed term then a notice which complies with s21(1)(b) will be an acceptable means of termination either being served during a fixed or periodic part of the tenancy. A notice under s21(4)(a) is only for tenancies that were periodic from the outset and have always been so. Therefore for most tenancies the s21(4)(a) notice is now irrelevant as almost all of them have at some stage have included a fixed term.

However, “Where a tenancy was periodic from the start, or where the tenancy provides for an initial fixed term, then a periodic tenancy thereafter (a contractual periodic) a s.21(4)(a) notice will still be required.”Section 21

Further in depth notes on this by Nearly Legal can be seen here

200 Housing benefits tenants are served section 21 notice by Kent Landlord Landlord News, Latest Articles

Kent based Landlord Mr Fergus Wilson reported to the press that he has served section 21 notices to more than 200 tenants on housing benefits asking them to leave after six months.

Mr Wilson has a portfolio of over 1000 properties and has decided not to rent in the future to tenants claiming housing benefit preferring instead tenants from Eastern Europe who he says are more likely to pay their rent on time.

Mr Wilson said, “this decision is only down to money it has nothing to do with the personalities involved.

“When it comes to money over half of people on benefits were defaulting on their rent, and when it comes to people who are working, we’ve not had one single person default on one single penny. You can appreciate why. Rents are going up in line with the price of houses and housing benefit levels are dropping at the same time.

“Tenants from eastern Europe, places like Poland, have been here a number of years now and have built up a good enough credit rating to rent privately. We won’t see the impact of more recent migration for years to come, but people on benefits are having to compete with them.

“My message to people is get yourself a job, and you will get yourself a house.”

Mr Wilson also added “The problem is that you have a finite number of houses, but more people wanting to rent them than places are available. With that pressure, what tends to give is the poorest people at the bottom of the economic pile.

“We are going to be in a position in the next 20 years where it becomes more and more difficult for people to find housing, and no one seems to have an answer. You tell people in a place like Ashford that they need more housing and they’re likely to lynch you they are sick of being built on, but it’s a fact.”

The NLA has also released a statement regarding this story in the press:

Chief Executive Officer, Richard Lambert said, “our current research shows we’re seeing more and more landlords moving away from renting to tenants claiming benefits.

“It was widely assumed that rent rises were fueled by housing benefit, and that if benefit rates were reduced, rents would fall back to meet them. That’s been shown to be a completely false assumption. There are many wider factors affecting rent levels, principally the availability of properties and the number of people looking to rent.

“As the Welfare Reform agenda has progressed over the past three years, benefit levels haven’t kept up with rents, meaning it’s a greater risk for landlords renting to tenants who rely on benefits, which is why they are looking more and more to working tenants who don’t tend to fall into arrears that easily. The fact is that there are many more working tenants looking to rent because it is still so difficult for first-time buyers to get onto the housing ladder. “However, we know of many landlords who have rented to housing benefit tenants on for many years and have never had a problem, so our advice would be to always look at every tenant on an individual basis.

“Being a landlord is a business and there are landlords who specialise in letting in the housing benefit market. They tend to be the more experienced landlords with larger portfolios, who understand how to manage tenancies to ensure stability and minimise the risk of arrears.”

The following interview with Fergus Wilson appears courtesy of Property Tribes

No sign

Don’t Shoot the Messenger #10 Cautionary Tales, Don't Shoot The Messenger, Guest Columns, Tenant Eviction

I recently had a long online discussion with Mary Latham, in which we both tried to get to the bottom of the legal stuff around whether or not a managing agent is allowed to sign a Section 21 notice.

We didn’t end up with a definitive conclusion. I will write a separate piece on my thoughts on the legal stuff in a while but I wanted to write about something that came up as an adjunct to what we were talking about. Whether people in my line of work, who defend possession actions brought by landlords, will always try to buy time for the tenant in the face of all reasonableness. Continue reading Don’t Shoot the Messenger #10

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