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  • Buy-to-Let

    Abolition of Section 21 - effect on tenants



    Vulnerable tenants at higher risk of rent arrears will be hit hardest by plans to change the way landlords can repossess properties.

    According to one of the largest ever non-government surveys of landlords and agents 84 per cent said that plans to scrap Section 21, ‘no explanation’ repossessions would make them “more selective” about the tenants they rent to.

    The Residential Landlords Association, who conducted the survey, has warned that this means that landlords would be less likely to rent to those considered to be of higher risk of rent arrears or causing damage to a property, such as tenants with pets. Landlords would be concerned that if problems emerged they would not be able to swiftly regain possession.

    Una, a landlord in Leeds, told the RLA: “If Section 21 were to go I would only rent to professionals because I don’t want to be left in a situation where a tenant is in my property who cannot afford to pay the rent.”

    The research also refutes the argument that many Section 21 notices are used for no reason.

    Of those landlords who had used this route to repossess properties, 84 per cent had used it because of tenant rent arrears, 56 per cent had used it because of damage to a property and 51 per cent had used it because of anti-social behaviour. In fact, rather than landlords seeking to evict tenants by this route 26 per cent said that they had served a Section 21 notice at the tenants request to enable them to seek social housing to avoid them being classed as intentionally homeless.

    At present, landlords can repossess properties using two routes. One, known as Section 21, enables a landlord to regain possession at the end of a tenancy and requires two months’ notice to be given but without providing a reason. Under the other avenue, known as Section 8, landlord can repossess a property under a number of set grounds including rent arrears and anti-social behaviour.

    The problem facing landlords is that the Section 8 process can take a long time during which a problem tenant may not be paying rent or could potentially be causing a nuisance to other tenants or neighbours. Many report dissatisfaction with the courts, citing numerous delays and problems with regaining possession from tenants for anti-social behaviour or rent arrears.

    It currently takes an average of over five months from a landlord applying to court for a property to be returned to them.

    The Government plans to consult on proposals to scrap Section 21 repossessions in favour of an as of yet undefined system.

    David Smith, Policy Director for the Residential Landlords Association, said:

    “Whilst no landlords should ever abuse the system, it is only right and fair that they can repossess properties swiftly and with certainty in legitimate circumstances.

    “At present, only Section 21 provides this certainty. If the Government is to get rid of it, landlords should have the same level of confidence and certainty about repossessing properties in cases such as rent arrears, anti-social behaviour or wanting to sell the property. 

    “Without such confidence landlords will simply leave the market, making it more difficult for the growing number of people looking for a home to rent.

    “Secure tenancies will mean nothing without the homes to rent being there in the first place.” 

    VIEW THE FULL SURVEY RESULTS

    David Smith has written a guest article for Property Tribes on this topic >>> David Smith - Views on RLA Section 21 Report

    The Residential Landlords Association is the partner association of Property Tribes and our members can take advantage of a 25% discount off membership.

    SEE ALSO  -         Abolishment of Section 21

    UP NEXT -             Direction of travel - Section 21 consultation

    DON'T MISS -        Section 21 - curated threads, news, & videos

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    Absolutely, if a tenant hasn't got a squeaky clean guarantor, has any question mark at all over suitability, this will make things very difficult for them.

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