The government says the aim is to have the Section 21 ban on evicting tenants in England in place by next summer.
The plans, part of the Renters’ Rights Bill, which was published and introduced to Parliament yesterday, builds on the proposal first put forward under the Conservatives.
Renter groups have unsurprisingly welcomed the bill, but landlords said it was “vital” the sector had sufficient time to properly prepare for the changes.
Housing minister Matthew Pennycook told the press: “We hope [the bill] will make very quick progress through the House of Commons and that we have that new tenancy system in place within the first half or around summer next year.”
The plans must be approved by MPs and peers, who could propose further changes, before they become law.
Beverley Kennard, head of lettings operations at Knight Frank, commented: “The Renter’s Rights Bill is a huge change, that landlords and agents will need time to understand. Agents will need to make changes to processes and procedures, review their systems, update tenancy agreements and train their staff, all of which will take time. It’s crucial for the government to acknowledge this and allow sufficient time for these adjustments, while offering clear guidance throughout the process.”
Under the proposals, Pennycook said landlords would still have “robust grounds” for regaining possession of their property if needed; for example, if they wanted to sell or move into the home, or if a tenant was causing anti-social behaviour or in rent arrears.
“We are pleased that the UK government has prioritised the Renters’ Rights Bill in its legislative agenda and set out its plan to strengthen tenant rights,” said Law Society of England and Wales president Nick Emmerson.
“As the housing crisis spirals out of control, it is vital that renters are afforded clear rights that protect them from unjust treatment and homelessness. Ending ‘no-fault’ evictions is a critical step in bolstering these protections. However, more details are needed on how the government will ban ‘no-fault’ evictions, while balancing tenant rights with landlords’ routes to repossessions. Maintaining this balance is key in reforming the rental market.
“We also urge the government to invest in both the legal aid system and the courts to ensure renters can access justice and are protected when facing eviction.”
Jeremy Leaf, north London estate agent, commented: “As the ending of Section 21 ‘no fault’ evictions in particular has been in the pipeline for so long, the impact on the market will be relatively limited.
“Many of the landlords who were worried about the change – and mainly ‘accidental’ landlords – have either sold long ago or are in the process of selling. Others who have stayed the course have been waiting to hear the finer points of the proposed legislation before making a decision one way or the other.
“As far as we are concerned, all new housing measures need to pass the following test – ‘will the change help to address the present chronic shortage of affordable housing for sale and to let?’ We are not convinced the Renters’ Rights Bill does so in its present form.
“In our view, tenants should not have to risk losing their homes without clear and reasonable grounds whereas landlords should be able to regain possession of their properties from disruptive tenants.
“The previous government were concerned about removing Section 21 without sufficient court capacity to deal with the inevitable increase in applications.
“We wait to hear whether there will be any reduction in time required for possession hearings as part of the latest influx. In our experience, it’s not just landlords but fellow tenants who seek early eviction of difficult tenants in order to reduce uncertainty, stress and disturbance.
“A reduction in supply will only reduce choice and quality of available accommodation as well as increase upward pressure on rents.
“Overall, these measures aren’t a huge surprise and the threat of them has not seen landlords leaving the sector in their droves. It remains to be seen what is added or subtracted as the legislation progresses through Parliament. Whether the final version is seen as maintaining a reasonable balance between the interests of landlords and tenants will determine the longer-term effects on the market.”
Good luck to the tenants, there’s always £73m a year Shelter with their hotline to help out.
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Between this rushed piece of legislation and the proposed hike in CGT we will be lucky if there are any landlords left!
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While there is capital growth and income yields greater than other investments, Section 21 isn’t an issue for the majority of landlords who are providing homes for long-term, stable tenants. Changing tenants is a hassle and an expense most landlords can’t be bothered with. Let-only agents might be concerned about a legislative change, but otherwise, things will most likely carry on much as they do now.
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You 100% correct. Very few Landlords will not renew a tenancy unless the tenant is bad or the Landlord is selling. For years Landlords will not increase the rent but when they do the tenant is often offended and moves out but will make viewings for the new tenant difficult.
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Uk is just one populist , confused , negative s#it hole .
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As far as I can see there is nothing in this bill that helps landlords to quickly evict tenants who are wrecking their home. In fact , I am at a loss to see anything that will make life easier and less complicated for landlords. I disagree that landlords are not selling up, of course, they are.
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Whilst the loss of S21 will negatively impact landlords with defaulting/ASB tenants, the reality is this will mean little to no difference to 98% of the market. 85% of tenancies are ended by the tenant wishing/needing to move in/out with a partner, up/down the market or relocate for work/family. These motivations won’t ever change. Owners can still sell or reoccupy if need be. Banks can still repossess. Annual rent increases in line with market are still permitted.
For one of the largest changes in our industry’s history, the reality is very little will change.
However, the most impacted group by this change will be tenants- and negatively. Tenants with borderline income, unusual income structures, with pets, etc. who owners/agents would be willing to take a risk knowing that they had S21 as a safety net, simply won’t take the risk and those MOST in need (the lower mid-market section) will be shunned.
If Awaabs Law, Decent Homes standard, discrimination and excessive/unjustified rent increases are what are worrying you, then maybe it’s time to take a l,ong hard look in the mirror and decide if you really should be providing housing.
With so much legislative change- for good owners and their agents, very little will change. Our job, as agents, is to help our clients understand this, keep calm and carry on.
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