75% of landlords are very concerned about plans to abolish Section 21 ‘no fault’ evictions, announced as part of the Government’s recently published Renters’ Rights Bill.
In a survey conducted by buy-to-let lender Landbay, landlords revealed that their main concern was a loss of control of their property and their ability to remove problem tenants. They argued that the ability to expel bad tenants was ‘vital’.
One landlord said: “Abolition of section 21 is completely wrong – landlords need to be able to take back control of their property, if so desired, once the fixed term AST (Assured Shorthold Tenancy) has expired.”
Another told Landbay: “It’s a catastrophe for landlords. It takes away any control of the property from landlords.”
In her speech at the Labour party conference, deputy prime minister and housing secretary, Angela Rayner told members that the Bill will ‘rebalance the relationship between tenant and landlord and end no fault evictions – for good.’ In terms of timeline, new Housing Minister Matthew Pennycock told BBC Breakfast that he hopes the new rules will be in place before next summer.
The ban on ‘no fault’ evictions was first proposed by the previous Ggovernment under its Renters’ Reform Bill. A subsequent amendment meant that abolition would only happen once improvements had been made to the court process. However, that Bill ran out of parliamentary time when the General Election was called.
The new Bill proposes abolishing ‘no fault evictions’, removing the threat of arbitrary evictions and increasing tenant security and stability. New clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to.
Unlike the Renters Reform Bill, the new Bill does not make abolition dependent on improvements to the court process. Landlords told Landbay of their concerns about the already slow and lengthy courts process, which is likely to only see increased demand as courts hear possession claims and landlords look to use Section 8 powers instead.
One landlord said: “To have any faith in these proposals is to be naive with regard the capacity of the British court system to handle the work load in a reasonable time.”
Another added: “Currently, the courts are overwhelmed with the amount of requests they get. The courts need to cope before the Bill is implemented.”
The National Residential Landlords Association also shares this view.
Rob Stanton, sales and distribution director at Landbay, said: “Rent reform has long been on Labour’s radar and formed a key part of its election manifesto. We knew this would be a priority for the new government and it looks like it plans to move quickly. Nonetheless, our research shows that landlords have significant concerns about the new Bill, particularly around ‘no fault’ evictions.
“While no decent landlord will object to tenants being treated fairly, they argue that the property owner deserves the same rights. We have to hope that, as the Bill starts its long journey through parliament and the House of Lords, amendments are made to create a fairer piece of legislation that doesn’t negatively impact supply or rent for tenants.
“It’s important to remind landlords that the buy-to-let sector and the private rental sector is no stranger to new legislation. Add in changes of government and economic crises, the sector continues to thrive. Above all, lenders such as Landbay remain active in the market, working with brokers to support landlords of all sizes and requirements. No matter how the new Bill comes out in the wash, this will not change.”