The Government is proposing the scrappage of Section 21 of the Housing Act, which gives landlords the right to evict tenants without providing a reason, something which is also known as a “no-fault” eviction. At this weeks Liberal Democrat autumn conference, they passed a motion on the floor agreeing to propose the scrappage of Section 21 of the Housing Act 1988, in a move aimed at protecting tenants. This follows the government’s proposed scrappage of Section 21 in April 2020.
Supporters of the idea claim scrappage of Section 21 ensures that landlords must give a reason for seeking repossession, but what does this really mean in reality:
- Landlords will not be able to evict tenants resulting in indefinite tenancies. Add to this the further discussions around introduction of a rent increase cap it, landlords will find it more difficult to make an income from a property
- Fewer landlords putting properties on the market and instead selling which will of course reduce the supply in the private rented sector
- More rental arrears cases having to go through the custodial system so a tenant can be lawfully evicted from a property. According to the NLA, 57% of all Section 21 Notices that were served were because of rental arrears
- Landlords becoming more selective on the tenants that they select for their properties meaning that tenants with a low credit score or on Universal Credit, Housing Benefit and other state benefits may struggle to find accommodation
Richard Lambert, CEO of the NLA, commented: “Rent arrears is the biggest problem that landlords face, and the main reason why they use Section 21 to evict a tenant. So, if the government removes what they see as their only safety net…they will have no option but to become more selective.”
We feel that the Government should “think twice” before enforcing the scrappage of Section 21 in the private rented sector, as some of the most vulnerable tenants are likely to be the biggest casualties of the initiative. The consultation runs until 12th October