The Renters’ Reform Bill is due to go before Parliament this year. If it is passed into law, it means the controversial Section 21 eviction notice could end up in the dustbin of history.
Why are Section 21 changes planned? It all began in 2022 with a white paper called “A Fairer Rental Sector”, which grew out of a 2018 survey into the experiences of private renters.
The survey revealed that private renters tend to move on after an average tenancy of just 4.1 years. That’s nearly two-thirds shorter than the average period renters spend in social housing and almost three-quarters less time than owner-occupiers spend living in their properties. This eye-opening statistic showed how transient private renting could be, with the rules around eviction shown to be partly responsible for the fast turnover of tenants.
What is a Section 21 ‘no fault’ eviction notice?
Up to now, one of the main issues with private renting has been the ease with which landlords can evict tenants. Research by the housing charity Shelter found that the threat of eviction made it harder for private tenants to plan for the future. It also negatively affected their children’s education, their personal finances and their mental health.
Currently, when a landlord issues a Section 21 notice, it means the tenant has no option but to move out of the property after the statutory notice period.
It’s called a ‘no fault’ eviction because the tenant can be made to leave, even though they haven’t breached the tenancy agreement. What’s more, the landlord is not obliged to give them a reason for the notice to quit.
What changes can we expect?
The Housing Act of 1988 provided the legal framework that created ‘no fault’ evictions, but it seems things are about to change. The Renters’ Reform Bill – which the government says will provide “the biggest shake-up of the private rented sector in 30 years” – is expected to become law this year.
The Bill promises the abolition of Section 21, which means landlords must say goodbye to the hated Section 21 notice. Assured and Assured Short hold tenancy agreements will also end, and tenancies will simply roll on to become ‘periodic’ tenancies with no fixed end date.
If and when the Bill is passed, landlords will only be able to evict a tenant if they can offer a solid reason, defined in law, to take back their rental property.
What do the changes mean for landlords and tenants?
As a tenant
- If you haven’t breached any of the terms of your tenancy agreement, you can remain in the property until you choose to give notice.
- Landlords can no longer give notice to evict a tenant in the UK unless they want to move back into the rental property themselves or sell it.
- A portal will be created to help tenants understand their rights.
- It is believed that the new measures will stop rogue landlords from acting in revenge because tenants have asked for repairs or challenged unjustified rent rises.
As a landlord
- If your tenants aren’t in breach of the tenancy agreement, you can only issue an eviction notice in the UK if you intend to move back into the property yourself or sell it.
- You will still be able to issue a tenant eviction notice in the UK if your tenants are in rent arrears, behaving in an antisocial way, or causing damage to the property.
- New systems will be put in place, so problem tenants can be removed more quickly and easily.
The government aims to make life easier for responsible landlords. It has pledged that Section 8 grounds for possession will be strengthened and court proceedings will be speeded up.
How will the changes happen?
The new system will be introduced in two stages.
The first stage will see all new tenancies convert to periodic tenancies. The rules introduced through the Renters’ Reform Bill will also come into effect for these new tenancies.
In the second stage, existing tenancies will roll over to become periodic, and those landlords and tenants will be legally required to adopt the new system.
When can we expect new rules on Section 21 to become law?
As Ilford estate agents, it’s our job to stay up to date with the latest legislation affecting landlords and tenants. That’s why we’ll be keeping a keen eye on the progress of the Renters’ Reform Bill.
Currently, there is no confirmed date for the Bill to reach Parliament. However, in February, a government spokesperson confirmed that it would be included in this parliamentary session (now extended to October 2023).
If you are looking for a home to rent locally, we would love to help. Alternatively, if you’d like to learn more about our exceptional services for landlords, we’d be delighted to hear from you.
Why not give us a call at 0203 972 7341 or email info@oaklandestates.co.uk?
Properties for sale in Barkingside and Ilford
Properties to rent in Barkingside and Ilford
Don’t forget to follow our socials for the latest property market advice and listings:
https://www.facebook.com/Oakland-Estates-1426149597689066/?fref=ts
https://twitter.com/OaklandEstate
