Exclusive: Will the government delay Section 21 to social housing providers and not private landlords?

Exclusive: Will the government delay Section 21 to social housing providers and not private landlords?

10:02 AM, 21st November 2024, About 22 hours ago 14

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Rumours are circulating that the Labour government could delay the abolition of Section 21 for social housing providers but NOT for private landlords.

In an exclusive interview, Chris Daniel, a Private Sector Housing Consultant, eviction expert, and founder of Possession Friend, tells Property118 that the government is considering delaying the abolition of Section 21 for social housing, to give them time to put the necessary processes in place.

Chris also points out the bias in how social housing providers and private landlords are treated in the media, with private landlords often facing Civil Penalty fines, while social housing providers, who sometimes do much worse, rarely get the same level of coverage.

 

Help landlords with eviction challenges

Chris tells Property118 that Possession Friend was created to help landlords deal with Rental challenges.

He said: “I started as a telephone advisor then trainer for a landlord association, and as more landlords became aware of me, they began reaching out with issues around evictions or challenges with local authorities. I began providing support directly to landlords, which led me to establish Possession Friend.

“One of the key services we offer at Possession Friend is free advice for landlords — if they have a few questions or need some guidance, we’re here to point them in the right direction.”

Section 21 delay for social housing?

Chris says that the government is planning to delay Section 21 for social housing but NOT private landlords which he says is unfair.

He explains: “I was speaking to a barrister about a month ago at a conference, and there are rumours that the government is considering delaying the abolition of Section 21 for social housing to give them time to put the necessary processes in place. However, they won’t extend this to private landlords.

“There’s a concession being considered for social housing providers, but it won’t be available to private landlords. This creates a two-tier system, with discriminatory treatment between social housing providers and private landlords.”

Chris adds: “This certainly isn’t happening because social housing providers aren’t blameless when it comes to housing standards. The Housing Ombudsman regularly publishes a list of social housing providers who’ve had numerous warnings for failing to have proper complaint processes — issues that private landlords would be labelled ‘rogue landlords’ for in the media.

“Rogue landlords seem to be a term only used for private landlords, never for council landlords or social housing providers.”

When approached for comment by Property118 the Ministry of Housing, Communities and Local Government (MHCLG) said: “We will abolish section 21 ‘no fault’ evictions to create a fairer housing sector for all.”

The MHCLG spokesperson added: “These reforms will not be pushed through with loopholes that undermine their effectiveness; our priority is to ensure they deliver real, lasting change for renters.”

Local authorities make mistakes when it comes to housing standards

Chris explains that there are more than 400 pieces of legislation that landlords must follow, which can make compliance challenging.

He also points out the double standards where local authorities can break the rules without facing any consequences, while landlords face heavier penalties for similar breaches.

Chris said: “I had one case where a landlord came to me about civil penalties, and it was the first time this particular local authority had used them.

“The local authority had made a mistake, which I was able to identify. Not only did they withdraw over £3,500 worth of civil penalties, but I also went after them for the landlord’s costs. We sued the local authority for everything the landlord had paid, which they initially denied. The case went to a court hearing, and the local authority paid up just before the hearing.”

Chris says it goes to show that local authorities aren’t infallible.

He said: “It’s thought that when officials like a local authority pick up landlords for making a mistake, they can’t make mistakes themselves, but it goes to show that they can.

“You hear about hundreds of councils at Tribunal for breaching housing standards. There are also numerous social housing providers being taken to court and fined.

“You often see private landlords being fined in the press, but you don’t see the same level of coverage when it comes to council-owned properties.”

Chris says if you’ve got a problem like this, then it’s best to speak to a specialist who can provide advice. (Chris says if you would like to get in touch then please email Enquiries@PossessionFriend.uk )

Court backlog will get worse

Chris says sometimes landlords omit important details when issuing a Section 21 notice.

He says: “A lot of the difficulties come from trying to comply with a plethora of legislation. It’s about complying with all the requirements and record-keeping, especially when it comes to gas safety certificates.

“For over a decade, the government has been making it harder and harder for landlords to use Section 21, and now it’s come to a head with the abolition of Section 21 in the Renters’ Rights Bill.

Chris says the never-ending court backlog for repossessions is likely to get worse.

He explains: “Unfortunately, you are in the court waiting process, which can take several months, and it looks set to get worse.

“At the moment, we have a more expedited process for possession through Section 21, but once that’s gone, there will be a cliff-edge. The current government has put nothing in place to address the backlog in the courts.”

Chris also says many landlords feel the judicial system is biased against them, favouring tenants.

He said: “For the past five years, I’ve worked on housing cases for solicitors and housing associations, covering disrepair, injunctions and possession. From attending Civil Justice Annual conferences, I’ve picked up insights about how barristers become judges. Since legal aid often funds tenant cases, many barristers gain experience fighting for tenants, not landlords (as the tenant is usually represented by Legal Aid and the landlord saving solicitors fees usually represent themselves) I believe this bias often carries over when they become judges.

“I raised this informally with a judge, who said they’re trained to assist litigants in person (LiPs) — those without legal representation but landlords still feel disadvantaged.

“For example, I’ve had landlords who had a Section 8 notice dismissed from a court hearing because the elderly judge said the Section 8 notice said, “Assured Tenancies” and the rent arrears related to an Assured Shorthold Tenancy.”

Chris says he’s experienced plenty of other examples where a landlord had a case dismissed by a Judge.

He said: “In another case in a different part of the country, a judge dismissed a landlord’s rent arrears claim, deeming it defective. The judge argued that the landlord hadn’t proven ownership of the property, despite the tenant not disputing that they were indeed the landlord’s tenant. After I pushed back, the judge reluctantly allowed 14 days for the landlord to submit additional evidence.

“I later wrote to the court, tactfully highlighting the landlord’s perception of bias. At the retrial, a new judge presided, dismissed the tenant’s disrepair claim as baseless, and awarded possession to the landlord along with £13,000 in rent arrears.”

Renters’ Rights Bill will cause unintended consequences

Chair of the Lettings Industry Council, Theresa Wallace, told a Renters’ Rights Bill Committee that the Bill will cause unintended consequences for the private rented sector.

Chris agrees that the Bill will cause more landlords to sell up.

He said: “The unintended consequences will be fewer properties on the market, higher rents, and the people who will feel the effects the most are the tenants.

“A landlord has one property to rent and there was only previously three or five people chasing the property but it’s a law of detrimental effect as now more landlords are selling up and this landlord with the one property now has 20 people chasing the property.

“A landlord with just one property used to have three to five people chasing it, but now, with more landlords selling up, this landlord now has 20 people after the property.”

Chris adds that many tenants are happy living in the private rented sector, but this is not mentioned in the media.

He says: “I always quote the statistics from the English Housing Survey, which show that 85% of tenants are satisfied in the private rented sector.

“The English Housing Survey Private Rented Sector report for 2021-2022 reveals the majority of renters (77%) ended their last tenancy because they wanted to move NOT because of eviction.

“Whatever legislation you bring in, there will always be a need to evict tenants, whether that’s due to anti-social behaviour or the need to sell. It’s really a sledgehammer to crack a nut, and the nuts that are going to get cracked are the tenants.

“There’s a small number of bad landlords, just as there’s a small number of bad tenants, but the government would have been better off focusing on the problem areas, rather than using a shotgun approach that tries to fix things that aren’t broken.”

Housing coalition is dedicated to supporting landlords

Chris also founded the Housing Coalition, which includes Possession Friend along with other organisations such as ihowz, Property118 and Propertymark, all dedicated to supporting landlords. To be fair to Propertymark,  they ‘host’ the Coalition, providing a secretarial function.

He explains: “We started forming the group a few years ago with various landlord associations to push back against the government during Covid and when the abolition of Section 21 was first proposed. I tried to revive it a couple of years later without success but managed to bring it back about a year ago.

“The group includes regional landlord associations like Propertymark, online forums like Property118, and housing solicitors. While it’s currently focused on landlords, we’re looking to expand and have already included bailiffs and high court enforcement officers to share their perspectives on issues within the justice system.”

Chris explains, that while the Housing Coalition is still in its early stages, they’ve tried to challenge the media bias around landlords.

He said: “Our inaugural meeting was held a year ago at Propertymark’s London offices. A few months ago, we came across an article on Property118 about a YouGov survey commissioned by Citizens Advice, which claimed nearly half of renters live in damp and mouldy homes. After investigating, I found that the survey was based on a small sample of just 2,000 renters who had complained, yet Citizens Advice generalised it to all renters.

“We wrote to Citizens Advice, introducing ourselves and expressing our concern about the complaints tenants are bringing to them, as well as the remedies they suggest. They acknowledged our letter and are considering it.

“We will continue in that vein, addressing stories that are published and concern landlords, and we believe the Housing Coalition should have a say in these matters. We’re still a young group, but we’re committed to pushing forward.”

Labour government don’t support the private rented sector

Chris says he doesn’t see the Labour government supporting landlords or the private rented sector.

He says: “The Labour government don’t support the private rented sector it’s quite the opposite. I don’t expect any concession from the Labour government or even the Conservative government.

“I think landlords need to tighten their belts and weather the storm. One of the key ways I’ve seen Section 21 used is to address anti-social behaviour, and I’ve attended meetings with groups on how landlords can better prepare themselves for situations like this. If they need to proceed with a Section 8 claim, it’s important to be ready.

“There’s no way to sugarcoat it — the abolition of Section 21 is not good news.”

The Ministry of Housing, Communities and Local Government told Property118, “that landlords have nothing to fear” over the abolition of Section 21.

A spokesperson told Property118: “We value the contribution made by responsible landlords and as we have set out previously, they have nothing to fear from our reforms. Under our plans, where there is good reason to, landlords will be able to take their property back.”

Chris says the Housing Coalition will continue to support landlords.

He said: “A lot of landlords, myself included, are now only renting to tenants with a suitable guarantor. Having someone responsible for the tenant is a huge leverage point when dealing with any issues. In the meantime, I’ll continue to help landlords as much as I can, particularly around anti-social behaviour, and the Housing Coalition will also push back on behalf of landlords.”


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moneymanager

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15:54 PM, 21st November 2024, About 16 hours ago

Reply to the comment left by Ryan Stevens at 21/11/2024 - 10:15
My understanding is that suggesting/requiring the use of a company let to evade the Tenancy Charges regulations us prohibited.

Reluctant Landlord

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16:35 PM, 21st November 2024, About 15 hours ago

Reply to the comment left by TheMaluka at 21/11/2024 - 14:35
which is why SP/Councils are setting themselves up for a fall. NO PRS LL will be going to take a tenant from the housing list post RRB as it is, so where do they think these people are going to go?

The issue will be left squarely back at their own door as they juggle to find expensive emergency accommodation for them instead!

Ryan Stevens

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17:08 PM, 21st November 2024, About 15 hours ago

Reply to the comment left by moneymanager at 21/11/2024 - 15:54
Probably, I haven't checked. It was a bit tongue in cheek anyway; If the Bill is enacted in its present form I will be selling up!

Stella

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18:21 PM, 21st November 2024, About 14 hours ago

Reply to the comment left by Ryan Stevens at 21/11/2024 - 17:08
I think a lot of us will be selling up if the bill is enacted in its present form!

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