Renters Reform Bill: No-Fault Section 21 Evictions Ban Explained

1.  Are you interested in buying property from probate or repossessions? If YES, Click here Contact Hello, Sign in Register Property Classifieds The Home Of UK Property Resources  Home / Blog / Renters Reform Bill: No-Fault Section 21 Evictions Ban Explained Back to search results Search Website Blog  LIKE Print  Posted on 19/09/2022 in UK Property Market by Property Classifieds Press Keyword (Optional)  Select Category Renters Reform Bill: No-Fault Section 21 Evictions Ban Explained Search Now Share This Page

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3. There has recently been a renters reform bill published which makes changes in particular to section 21 of the Housing Act 1988. This is a significant change and anybody who rents a property or owns a property that they rent out should be aware of what it could entail. What Will the Bill Do? The bill is set to be introduced during the 2022-2023 parliamentary session. It is going to set out to completely abolish ‘no-fault’ section 21 evictions which sometimes take place in the private rented sector. What is the Problem with Section 21 As It Stands? Currently, section 21 contained within the Housing Act 1988 makes it possible for landlords to repossess their properties from shorthold tenants without the need to establish that that tenant is at fault in some way to justify the repossession. This is why it is commonly referred to as the ‘no-fault’ ground for eviction. The argument for getting rid of the section and why it is viewed by many as problematic is the fact landlords have the ability to terminate a shorthold tenancy at short notice, and this can have a serious detrimental impact on the wellbeing of tenants. There are a lot of tenants out there who are worried about exercising the rights they have to repairs or to challenge increases in rent because it is so easy for landlords to evict them with little to no repercussions simply. People have also often felt worried about making long-term plans in a property or an area also due to the fact they could be evicted at any given moment. This comes with effects on wellbeing but then also has a knock-on effect on tenants' children’s education. Consultation on Abolition The government announced that private landlords would not be able to evict tenants from their homes at short notice without a good reason for doing so back in April 2019. The decision was then tested because, following its announcement, there was a lengthy consultation process that ran from July to October 2019. Once the consultation had been completed, and the paper was published, it also proposed the abolition of section 21. What Does the White Paper Say? In 2019 when the conservatives published their manifesto, they stated that they would be responsible for creating a better deal for their renters. This meant that no-fault evictions would become a thing of the past, which they intended to do through the Renters Reform Bill. A reference to this bill was made in the Queen's Speech in 2019; however, following the 2020-2021 parliamentary session, there has been no introduction of the bill as of yet. Though there has been no official reform put forward, there has been a white paper which was published back on 16th June 2022. This white paper is called ‘a fairer private rented sector, and it makes reference to a 12-point action plan where the end goal is to create a better sector for private renters. In order for these reforms to properly come into action, though, there is going to have to be some legislation in place. The white paper states that a tenancy is only going to end if the tenant ends it or if the landlord has a valid ground for eviction. How Have People Reacted to the News? Naturally, as is the case with any significant change in law, there have been a number of reactions to the news that section 21 is going to be abolished. Some people are for it, and some people are against it. The divide tends to be quite clear as it is split between organisations that advocate on behalf of tenants and those that advocate on behalf of private landlords. Those who are on the side of tenants are very much in favour of abolishing section 21, but on the other hand, those who are on the side of landlords do not think the abolition is fair. Polly Neate, who is the chief executive of homeless charity Shelter, has described the white paper as being a “game-changer” for people who rent a property privately. Generation Rent is also happy about the news, stating that it is important to ensure tenants are as protected as possible, which means longer notice periods. Local governments also look positively at the news but put emphasis on the fact that they are going to need strong enforcement powers and a number of resources to help them make sure the reform is as successful as possible. There is criticism about the reform, though, as the National Residential Landlords Association commented that a reformed court system and improvements surrounding the grounds for possession should be looked at before the extreme move of completely getting rid of section 21 is carried out. Some organisations say that there is a risk that landlords are 

4. going to leave the sector in light of the news, which means that there will be reduced access to the housing market for those who are currently looking to buy or invest. Do You Need Help Navigating the Housing Market? There are always new changes implemented throughout the housing market, and one of the most significant recently has been the government's announcement that they will be abolishing section 21. This is because, currently, under section 21, landlords are able to evict tenants for no reason and with very short notice, which has resulted in tenants being unable to exercise their rights whilst living there and issues surrounding wellbeing and mental health. Opinions on the abolition news are naturally split, but it appears that, following the publication of a white paper, they are due to come into effect soon. If you rent or own a property or are currently looking to buy and would like to know more about how this news could affect you, then consider enlisting the help of Property Classifieds. Our team of experts will be able to provide you with all of the information you need and as such, if you have any questions or require any further information then do not hesitate to get in touch.  Sign up today We’ll keep you in the loop of all the new exciting opportunities. Join Our Newsletter - Today The Property Website That Allows You To Sell Your Home Fast To Investors For The Best Cash Price Website Support Partnerships Sell House Fast Property Investments FAQ Blog Terms of Use Privacy Policy Password Retrieval Contact Us Site Map Estate Agents - Advertise Properties FREE The result is a quick house sale for homeowners & property sourcing at it's best for investors. We can also recommend the best local estate agents if you want to put your property on the open market.       © 2022 Property Classifieds Limited. All Rights Reserved. 