Section 21 evictions on the rise – before they are abolished
Section 21 evictions have been on the rise since the announcement of the abolition of Section 21.
Proposals in the government’s Renters (Reform) Bill, include getting rid of Section 21 evictions. Even before the amended legislation comes into force, the proposed abolition is impacting landlords and the rental market.
What is a Section 21
A Section 21 eviction is when landlords can evict a tenant with two months’ notice without having to give a reason for the eviction. They are often referred to as ‘no-fault’ evictions. The alternative Section 8 eviction requires the landlord to prove the tenant has broken the terms of the tenancy agreement.
Impact in advance of the reform Bill
It appears that, in anticipation of the change, more landlords are serving Section 21 notices. In May 2023, Citizens Advice helped almost 2,000 people with Section 21 notices. This is the highest ever number in a single month and 25% higher than in the same month last year.
According to Citizens Advice, almost half of these Section 21 notices are happening so that the landlord can sell the rental property. This reflects concern that an increasing number of small landlords are leaving the rental market. The effects of mortgage rate rises, excessive taxation and increased regulation are all having an impact.
Additionally, with a scarcity of rental property, rents are increasing, and some landlords may be tempted to use Section 21 to evict existing tenants and then secure new tenancies on higher rents.
Another impact of the changes is the removal of fixed term tenancies. Landlords of properties let to students may be particularly impacted as they can no longer offer fixed term lets to coincide with the academic year.
What other changes are proposed in the Renters Reform Bill?
Among the reforms in the Bill, the government proposes to:
- Replace fixed term tenancies with periodic tenancies, allowing tenants to move out at any point with two months’ notice.
- Limit rent increases to once a year and ensure that two months’ notice is provided for any rent rise
- introduce a new Ombudsman to resolve disputes between landlords and tenants. Landlords will be required to join a new Ombudsman scheme
- Improve the procedure for ‘fault-based’ evictions. For example, in respect of anti-social behaviour or repeated rent arrears.
- Give tenants a legal right to request a pet in the property
- Introduce a ‘Decent Homes Standard’ to set minimum standards for the quality of rental properties
- Make it illegal for landlords to refuse to rent to those in receipt of benefits
Michael Gove has recently pledged to support landlords as well as tenants through the reforms. He vowed to make it easier for landlords to evict tenants for anti-social behaviour or repeated non-payment of rent. There is a way to go before the Renters (Reform) Bill becomes law and many changes are still likely.
For advice and support on Section 21 and all landlord and tenant matters, please contact:
David Trood
dtrood@bird-lovibond.co.uk
01895 256151