With a number of new Landlord laws and legislation's coming into force over the past 18 months, the Government has recently announced their intention to scrap Section 21 notices for eviction. The planned reforms are an effort to offer tenants more long-term security and is set to be one of the biggest changes to the private rental sector in a generation.

In current law, tenants can be given notice to vacate a rental property by being issued with a section 21 notice requiring them to leave within eight weeks. As a landlord you do not have to give a reason for issuing a section 21 notice.

The new legislation would effectively create open-ended tenancies, with landlords being required to provide a “concrete-evidenced reason for bringing the tenancy to an end”.

But what if a landlord wants to sell or move into their property?

The government's proposal has also included plans to make changes for Section 8. I personally feel an overview of the system is necessary, landlords should be able to gain a much faster possession if the tenant has not been paying rent. This will hopefully be implemented and has been promised by way of expedited court processes.

The reason many landlords use Section 21 to gain possession rather than Section 8, is because it is typically quicker. Landlords have little faith in the current court system and few anticipate being able to pursue rent arrears without a lengthy process, so most take the decision to forfeit recovering lost rent and just to get their property back as soon as possible so they can find new tenants.

By removing the ability to evict with a Section 21 notice, I predict there could be changes to the rental sector. 

We may see a surge in landlords serving section 21’s in the near future if they are not confident about their current tenants. Alternatively, future Landlords may even think twice about the world of buy-to-let, and current Landlords may exit the market completely, thus limiting future supply.

I fully understand the argument that landlords should not be able to evict good tenants without reason and that families should have greater security, however, with current laws for rental arrears and court evictions, the proposals need careful consideration.

Until next time

Thomas