Renters’ Rights Bill sparks landlords’ worries over Section 21

Renters’ Rights Bill sparks landlords’ worries over Section 21

0:02 AM, 4th October 2024, About 4 hours ago

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Most landlords (75%) are expressing huge concerns about the government’s plans to abolish Section 21 ‘no-fault’ evictions as part of the Renters’ Rights Bill.

A survey conducted by buy to let lender Landbay revealed that landlords’ primary concern is a loss of control over their properties and their ability to remove problem tenants.

They argue that the ability to evict bad tenants is crucial for maintaining control of their investments.

‘Reform has long been on Labour’s radar’

Landbay’s sales and distribution director, Rob Stanton, 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.”

He added: “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.”

Increase tenant security and stability

While the government aims to increase tenant security and stability by abolishing Section 21, landlords are concerned about the potential impact on the court process.

They fear that the already slow and lengthy court system will become even more overburdened as landlords seek to use Section 8 powers instead of relying on Section 21.

One landlord warned: “To have any faith in these proposals is to be naïve with regard the capacity of the British court system to handle the workload 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.”

‘Abolition of Section 21 is completely wrong’

One landlord expressed frustration with the proposed changes, stating: “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 landlord echoed these sentiments, calling the abolition a “catastrophe for landlords” that would deprive them of any control over their properties.

‘Relationship between tenant and landlord’

Deputy Prime Minister and Housing Secretary Angela Rayner has defended the government’s plans, stating that the Bill will “rebalance the relationship between tenant and landlord and end no fault evictions – for good.”

Housing Minister Matthew Pennycock has indicated that he hopes the new rules will be in place by next summer.

Mr Stanton said: “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.”


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