Why the abolition of Section 21 will backfire on tenants

The Renters’ Rights Bill and its mission to abolish Section 21 so called ‘no-fault’ evictions isn’t just a slap in the face of landlords everywhere – it’s a ticking time bomb that will blow up the private rented sector (PRS) and leave landlords and tenants in the rubble.

The government, cheered on by anti-landlord loons like Shelter and Generation Rent, thinks it is saving tenants from evil landlords.

They’re wrong. This legislation will make evictions harder, court delays longer and homelessness worse.

Every week I read about why the Bill needs to progress so that landlords can stop making tenants homeless because we won’t have Section 21 to rely on.

Now we have talk about eviction loopholes and having a buffer to introduce the Section 21 ban so the PRS can adapt – while campaigners say the ban should be enacted as soon the Bill gains Royal Assent.

Section 21 helps landlords

What MPs, tenant groups and the media don’t appreciate is that Section 21 wasn’t created as a sinister plot to terrorise tenants.

It was designed to give landlords the confidence they needed to invest, knowing they could reclaim their property quickly if needed, whether for personal use, sale or because a tenancy had run its course.

Section 21 might have the words ‘no-fault’ after it to help describe its purpose but that’s not strictly true.

Possessions almost always have a reason: rent arrears, property damage or antisocial behaviour. And yes, selling up or wanting a family member to move in.

Yet the word ‘eviction’ is so emotive, that it’s become the perfect weapon for the landlord-hating brigade.

They seem to think that scrapping Section 21 will make evictions vanish overnight. They’re delusional.

Evictions won’t drop – they’ll stay the same or get worse. Why? Because now landlords will have to justify every possession with a reason, and that reason could blacklist tenants from future rentals.

Check X/Twitter or local Facebook pages, and you’ll see the panic already: tenants citing ‘landlord selling’ as they scramble for new homes, often after years in the same place.

Good landlords are bailing out, fed up with the government’s overreach.

Reduce rough sleeping

And don’t be fooled by the homelessness hype. The idea that banning Section 21 will reduce rough sleeping is laughable.

Section 21 isn’t an eviction, it’s a notice that a contract is ending, just like any business terminating a deal.

If the government can fire a contractor without being accused of causing homelessness, why can’t landlords?

To our critics, I’d just like to say that landlords aren’t panicking right now; we’re planning. With the bill looming, we are doing what anyone would: protecting our investment.

Try dealing with court delays that can stretch to 15 months for possession orders. Where’s the dedicated Housing Court we desperately need?

Tenant safety net

But there’s a fly in the ointment because Section 21 is also a safety net for tenants too.

They can leave a property without a County Court Judgment (CCJ) or credit rating black mark, making it easy to rent again.

Now, every eviction will drag through the courts, leaving tenants with bad references and damaged credit.

The government’s approach, driven by lobby groups with more agenda than sense, will hurt the very people it claims to help.

Look at Scotland and Wales, the anti-landlord laws there have decimated landlord numbers, leaving rental shortages and soaring housing waiting lists.

In Wales, 45% of landlords apparently vanished in three years.

England’s landlord numbers are static, but small landlords are clearly exiting while bigger players expand. The latest UK Finance figures don’t lie.

Small landlords care

It’s worth noting too that most landlords just have one or two homes. They’ve usually inherited a property and seen a chance to earn extra income and build some financial security.

Most people don’t like change, especially when it’s heavy-handed government regulation that punishes the good for the bad.

Yet that’s exactly what’s happening with the abolition of Section 21.

Even solid landlords are selling up. Once current tenants move out, many won’t risk new lets, especially with proposed EPC changes and rising costs.

The government’s Section 24 and Capital Gains Tax hikes have already squeezed profits, forcing rent increases just to break even.

Now, with Section 21 on the chopping block, landlords look like they are ditching bad tenants before the law changes, not out of malice, but self-preservation.

The sector warned about this potential negative impact, but campaigners plugged their ears, dismissing it as self-interest. Well, now you are about to find out.

Shelter and their ilk have done more harm than good. Their relentless negativity has driven evictions, rent rises and good landlords out of the market.

I’m left wondering whether they are deliberately sabotaging tenants to stay relevant.

Plus, we have local authorities telling tenants to ‘stay put’ and wait for court eviction orders which only fuels the fire.

Tenants are looking at months in emergency accommodation and endless housing list waits. It’s just a mess.

And if the possession gets to court, referencing firms will blacklist tenants, slamming the door on future rentals.

It’s too late to make clear to Shelter and Generation Rent that the Renters’ Rights Bill is the most damaging legislation for tenants in 30 years.

No landlord evicts on a whim and yet that’s the narrative.

So, let’s bin the idea of abolishing Section 21 and replace it with a national property licensing framework, digital compliance and real enforcement against criminal landlords.

Otherwise, we’re all doomed.

Until next time,

The Landlord Crusader

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