Theresa May announces she will ban section 21

Theresa May announces she will ban section 21

7:41 AM, 15th April 2019, About 5 years ago 89

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Prime Minister, Theresa May, has announced she plans to ban the use of Section 21 or what is termed as so-called ‘no-fault evictions’ in England.

The PM said: “Everyone in the private sector has the right to feel secure in their home, settled in their community and able to plan for the future with confidence.”

“But millions of responsible tenants could still be uprooted by their landlord with little notice, and often little justification.

“This is wrong and today we’re acting by preventing these unfair evictions. This important step will not only protect tenants from unethical behaviour, but also give them the long-term certainty and the peace of mind they deserve.

“Landlords will still be able to end tenancies when they have legitimate reasons to do so, but they will no longer be able to unexpectedly evict families with only eight weeks’ notice.”

Communities secretary James Brokenshire said:

“Government was making the biggest change to the private rental sector in a generation. By abolishing these kind of evictions, every single person living in the private rented sector will be empowered to make the right housing choice for themselves not have it made for them. Evidence showed that so-called Section 21 evictions were one of the biggest causes of family homelessness.

“And this will be balanced by ensuring responsible landlords can get their property back where they have proper reason to do so.”

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.”

Shadow Housing Secretary John Healey cautiously welcomed the Tory proposals, but said they:  “Won’t work if landlords can still force tenants out by hiking the rent. For nine years, the Tories have failed to tackle problems facing private renters.

“Tenants need new rights and protections across the board to end costly rent increases and substandard homes as well as to stop unfair evictions.”

NLA Chief Executive, Richard Lambert, said: “Landlords currently have little choice but to use Section 21. They have no confidence in the ability or the capacity of the courts to deal with possession claims quickly and surely, regardless of the strength of the landlord’s case.

“England’s model of tenancy was always intended to operate in a sector where Section 21 exists. This change makes the fixed term meaningless, and so creates a new system of indefinite tenancies by the back door.

“The onus is on the government to get this right. It’s entirely dependent on the government’s ability to re-balance the system through Section 8 and court process so that it works for landlords and tenants alike. The government should look to Scotland, where they reformed the court system before thinking about changing how tenancies work. If the Government introduces yet another piece of badly thought-out legislation, we guarantee there will be chaos.”


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Comments

Graham Bowcock

13:08 PM, 15th April 2019, About 5 years ago

Reply to the comment left by Rod at 15/04/2019 - 12:13
Oh dear Rod, ASTs do not just end by effluxion of time, as far as the Landlord's position goes (although oddly the Tenant's position does end in this way). In order to bring the tenancy to an end the Landlord must always use a s21 notice. This is why the change will have a massive impact on Landlords.

Daniel Holder

13:13 PM, 15th April 2019, About 5 years ago

Reply to the comment left by Piers Calascione at 15/04/2019 - 09:29
Yes they will of considered the student market. Their aim to continue driving students out of PRS and into large student accomodation blocks.

Daniel Holder

13:13 PM, 15th April 2019, About 5 years ago

Reply to the comment left by Rod at 15/04/2019 - 12:13
No eviction unless a rental agreement has been broken. A bit like Europe.

Daniel Holder

13:15 PM, 15th April 2019, About 5 years ago

Reply to the comment left by Terry Fitzpatrick at 15/04/2019 - 08:08
Spot on Terry, houses will be saleable but at a very heavy discount. Lots of people will be selling up because of this.

Neil Patterson

13:24 PM, 15th April 2019, About 5 years ago

Reply to the comment left by alan taylor at 15/04/2019 - 12:56
The government will shortly launch a new consultation on proposals to remove the ability of landlords to use ‘no fault’ evictions under Section 21 of the 1988 Housing Act. >> https://www.property118.com/section-21-ban-government-consultation-press-release/

Mike

13:37 PM, 15th April 2019, About 5 years ago

This announcement is coming at a crucial time, right when her popularity is low down, it has to be election winning ploy, bribing the tenants, offering them sweeties for their vote, see who can offer a better deal Mrs May or Mr Corbyn, come on Mr Corbyn, what candies have you? what is your plan to groom the tenants? cap the rents?

But be this known, landlords don't use Section 21 for no reason or for no fault, that is Shelter myth, Section 21 is indeed used because there is a reason behind it, mostly a good one, taking this route gives landlords less stress and hassle free, section 8 can be contested by lying tenants, where there is not enough evidence to evict them, hence Section 21 serves an important purpose.

Neil Patterson

13:43 PM, 15th April 2019, About 5 years ago

Shelter still with one dimensional thinking! >> https://england.shelter.org.uk/media/press_releases/articles/abolishing_no-fault_evictions_will_be_outstanding_victory_for_11_million_renters

"Abolishing no-fault evictions will be ‘outstanding victory’ for 11 million renters

Polly Neate, chief executive of Shelter, said: “Government plans to abolish no-fault evictions represent an outstanding victory for England’s 11 million private renters. This change will slam the brakes on unstable short-term tenancies and give tenants everywhere a massive boost in security, for which the government will deserve great credit."

“One in four families now privately rent their home, as do hundreds of thousands of older people. And yet, we frequently hear from people with contracts shorter than your average gym membership, who live in constant fear of being thrown out at the drop of a hat. Ending Section 21 evictions will transform these renters’ lives – giving them room to breathe and put down roots in a place they can finally call home.

“Getting this new legislation through parliament is critical to people being able to stay in their rented home as long as they need, so we look forward to the government passing this law as quickly as possible.”

Rod

14:01 PM, 15th April 2019, About 5 years ago

So, if a contract is open ended is there any point in having one as few take much notice what's in them anyway! Are contracts a legal requirement ?

Neil Patterson

14:29 PM, 15th April 2019, About 5 years ago

"Research conducted by YouGov on behalf of the NLA in December 2018 showed that of the 11% of landlords surveyed who had sought possession over the last five years where the tenant was in breach of their agreement, 44% used only the Section 21 process to regain possession, while a further 22% used both Section 21 and Section 8.

According to the Government’s own figures, 90% of tenancies are ended by the tenant. Of the tenancies ended by the landlord, the majority are ended because of rent arrears."

Dennis Forrest

14:45 PM, 15th April 2019, About 5 years ago

The problem with the use of the word 'eviction' is to many peoples' minds it implies some degree of force or coercion. In actual practice it is just asking tenants to leave, with a minimum of 8 weeks notice, at the expiry of their tenancy agreement, which will not be renewed for a very good reason by the landlord. Personally I would not be averse to this notice period being increased to 3 calendar months, or in the case of tenants with children of school age, 4 calendar months. This would give tenants more than ample time to find and arrange alternative accommodation. On a personal note I will be selling all my properties over the next couple of years apart from the the most expensive one which is a company let. I have decided it is far less risky to increase my exposure to the stock market where the rules don't keep on changing!

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