How will the end of no-fault Section 21 evictions affect landlords?
By Helen Everritt, Property Manager
Better quality homes. Happier tenants. A clearer system for landlords.
When the Renters Reform Bill is introduced before the end of Spring 2023, it promises to be a game-changer.
And not just for England's 11 million private renters. Landlords will undoubtedly feel its effects too.
If legislated in full, the Bill aims to strike a fairer balance between the rights of tenants and landlords.
It will also signal an end to no-fault Section 21 evictions and make it illegal to remove tenants without a proper and justified reason.
So, how will this new ‘fairer’ private rented sector actually affect you as a landlord?
Why are changes being introduced?
Whilst the majority of landlords want to do the best by their tenants, there are still some who fail to conduct basic repairs.
This can leave families living in cold, damp and unsafe homes, who face the threat of being served a ‘no-fault’ eviction notice should they complain.
The Renters Reform Bill will put an end to this practice and give tenants greater security.
Families will no longer need to uproot just because a landlord doesn’t want to deal with a complaint, as evictions will only be allowed for a genuine and valid reason, such as damage, neighbour complaints, rent arrears etc, under a Section 8 notice.
As part of the Renters Reform Bill, the private rental sector will also have to comply with the Decent Homes Standard, legislation which states that homes must not have serious Health & Safety hazards.
By providing tenants with stronger powers to challenge issues without the fear of eviction, we believe the proposals will encourage landlords to keep homes in a good state of repair, with useable facilities.
Should landlords fail to provide a safe and healthy home, tenants could be able to obtain a rent refund legally.
What is a Section 21 eviction?
At the moment, a landlord can ask a private tenant to move out simply by issuing them with a Section 21 notice.
Commonly referred to as a ‘no-fault eviction, a Section 21 notice allows a landlord to carry out an eviction without a reason. Tenants are given just two months to leave and find a new home.
How will a ban on no-fault evictions work?
Whilst it is not yet clear what the new rules will be or how they will work, it is expected that a list of official grounds for eviction will be drawn up for landlords to follow.
Landlords in England will only be able to evict a tenant in reasonable circumstances, as defined by UK law, such as a tenant being three months or more behind on their rent or the landlord wanting to move into their own property.
If a tenant wants to leave, it is expected they will need to provide at least two months’ notice.
To ensure landlords are not put off from entering into longer-term fixed tenancies, a single system of periodic tenancies has been mooted to replace assured tenancies and assured shorthold tenancies.
Also under the new rules, landlords and agents will have to make their properties available for rent by families with children and people who are in receipt of benefits.
How will we help landlords comply with the law?
As soon as the new Renters Reform Bill comes into force, our team will actively advise our clients what they must do to comply with the legislation.
Given we work with excellent landlords who provide high quality accommodation, we expect little to change for our clients. Some may need to make some minor alterations.
However, rather than leaving landlords to worry about another headache, this is another issue our team will be hand to answer questions, discuss concerns, and ensure properties are always compliant with the law.
If you are a landlord without any management support, our team can review your properties with a few to taking on your portfolio and ensuring compliance through this change, and any future legislative changes, giving you peace of mind.
This can be a process which starts now, ready for the full list of rules and requirements being published next year.
Our role is to help landlords of residential properties to let navigate through the red tape, ensuring properties are always in the best possible condition and ready to rent.
Should you need more information and would like to discuss our support for the management of your property portfolio, get in touch or call 01482 566057 for an informal discussion.
