In a move to provide tenants with more security and clarity around their rental contracts, the Renter’s Reform bill intends to put an end to section 21 no fault evictions. Despite sounding like a significant shift in tenant-landlord relationships, the consequences of section 21 being abolished are not as extreme as landlords may first think.
What is the section 21 ruling?
The section 21 ruling grants landlords permission to evict tenants without a breach of contract or an acceptable reason. The ruling has previously received criticism for creating an unstable living environment for tenants and causing unfair evictions.
Shelter claims government figures show 5,940 households were “threatened with homelessness” in England as a result of Section 21 evictions between April and June this year.
As part of the renters reform bill, the section 21 ruling aims to provide fairer terms for tenants by removing landlord’s right to issue no fault evictions to tenants.
What is changing?
In a move to provide tenants with more security and clarity around their rental contracts, the Renter’s Reform bill intends to put an end to section 21 no fault evictions. Once the ruling is abolished, it will only be possible to end a tenancy if you are doing so under an acceptable reason (such as tenant breach of contract, anti-social tenants, or selling the property.)
Good news for Landlords?
Despite sounding like a significant shift in tenant-landlord relationships, the consequences of section 21 being abolished are not as extreme as landlords may first think. You may be relieved to learn that the changes to section 21 do not affect your ability to take back properties for necessary reasons. These ‘necessary reasons’ cover the majority of reasons for issuing a section 21 eviction. The major change here is that your tenants will be better informed on what are acceptable eviction reasons, helping to provide a sense of clarity about the terms of their tenancy.
Additionally, the process for these evictions may become easier for landlords. With the new changes, Court processing will be reformed to be quicker - creating a simpler and clearer process for both tenants and landlords.
Navigating this changing landscape can be challenging, so before making any changes or serving notice to your tenants, make sure you are well researched or have sought advice. Alternatively, work with a reputable managing agent who can help guide you through the process.
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