The Guild claim Section 21 ban won’t be retrospective

by Property 118

8:59 AM, 20th August 2019
About a month ago

The Guild claim Section 21 ban won’t be retrospective

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The Guild claim Section 21 ban won’t be retrospective

In an article written by The Guild of Property Professionals on the 16th August (click here to view the article) concerning the proposed Section 21 ban, The Guild claim to have had confirmation from government that it will not be retrospective.

Iain McKenzie, CEO of The Guild of Property Professionals said: “What this means is that should the law come into place, it will not impact tenancies that are already in place at the time it is passed. So, landlords in these agreements will still be able to use Section 21 until the tenancy comes to an end. Any new agreement thereafter will then become an assured tenancy.”

The government consultation on the Section 21 ban is still open until the 12th October this year.

It is not clear if this has been confirmed yet by any other source.

The Guild also gave an indication on timescales for implementation saying: “If the decision is made by the Government to move forward with the proposed changes and they are passed into law, there will be a transitional period of six months before the law comes into full effect. So, if nothing else changes and this matter is prioritised, we could see it come into place either towards the end of next year or perhaps early in 2021.”



Comments

Dr Rosalind Beck

9:48 AM, 20th August 2019
About a month ago

I read this weeks ago - I forget where, because it surprised me. I wouldn't be surprised if it's a trick. I don't know what the Welsh Assembly will do with their equivalent (that's the one which will affect me) - they always try to go further left than the Tories which is tricky when the Tory policies are akin to communism, with the threat to private property rights they entail.

Ian Narbeth

10:05 AM, 20th August 2019
About a month ago

"The Guild claim to have had confirmation from government that [the proposed Section 21 ban] will not be retrospective."
So what? Most tenancies don't last forever. Over time the vast majority of tenancies will be caught by the ban even if it is not retrospective. Furthermore, if a tenancy has lasted for years, it is less likely that the landlord will need to bring it to an end using section 21 than in a case where the tenancy has been running for less than a year.

Alternatively, as with the Tenant Fees Act the ban may apply to all new tenancies after a certain date and to all tenancies after a later date.

Dr Rosalind Beck

10:16 AM, 20th August 2019
About a month ago

Absolutely, Ian.
We really should be thinking about a potential Judicial Review. This move - if it goes ahead - and the current priority is to halt it - would slice a huge amount of value from our properties. It would be an act of political vandalism. We must not take it sitting down.

Jon

14:56 PM, 20th August 2019
About a month ago

If I read the Guild report correctly, there is a massive red flag to add to all the immediate concerns. Their article appears to suggest that using Section 8 (in all circumstances?) might be conditional on being able to prove compliance with all the current prescribed regulations.

"For tenants, the Government wishes to include the prescribed information requirements that currently exist via the Deregulation Act for the valid use of Section 21 in the Section 8 process to ensure their existing protection is maintained."

What are the chances that the drafting of this new legislation will lead to even a tenant in significant rent arrears being protected from Section 8 if the landlord cannot prove to a Judge in Court that they served a Gas Safety Certificate to the tenant prior to the tenancy commencing?

Dr Rosalind Beck

15:08 PM, 20th August 2019
About a month ago

Reply to the comment left by Jon at 20/08/2019 - 14:56
There is a very high chance of this. I referred to it in my article on conservativehome:

https://www.conservativehome.com/localgovernment/2019/07/rosalind-beck-the-governments-war-on-landlords-will-only-make-the-housing-crisis-worse-for-the-lowest-paid.html

This could mean a landlord paying all the costs for a stranger to live in their house forever - possibly even passing the tenancy on to another non-paying relative - if the landlord was not allowed to gain possession under all circumstances in order to sell - as that would be the only way out for the landlord.

Jon

15:24 PM, 20th August 2019
About a month ago

After almost 34 years of being a Landlord, this feels like we are nearing the end - of my work, my life savings and my pension, everything I have worked for in fact.
Quite a mind focussing state of affairs..........

Peter G

12:28 PM, 21st August 2019
About a month ago

Sad and strange that the Conservative party that promotes itself as the supporter of entrepreneurs has introduced so many draconian taxes and law changes targetting legally honest and hard working landlord entrepreneurs.


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