Government promises court reform before scrapping Section 21

The Government has confirmed that it will not abolish Section 21 ‘no-fault’ repossessions until it improves the court system for handling legitimate possession cases by landlords.

And student landlords will be pleased to hear that there will be a new ground to repossess properties annually to protect the student housing market.

The Renters (Reform) Bill, which will be debated by MPs today (Monday 23 Oct), proposes to scrap section 21 and replace it with a strengthened section 8, which requires landlords to provide a valid ground for eviction, such as rent arrears or anti-social behaviour.

However, the National Residential Landlords Association (NRLA), which represents more than 90,000 landlords in England and Wales, has warned that without faster and more reliable court processes, scrapping section 21 would deter responsible landlords from renting out their properties, exacerbating the housing supply crisis that renters already face.

Landlords have good cause to evict tenants

According to the NRLA, it takes an average of over six months for the courts to process possession claims where landlords have good cause to evict tenants.

The organisation has been campaigning for a dedicated housing court or tribunal to deal with such cases more quickly and fairly.

In response to a report from the House of Commons Housing Select Committee, which supported the NRLA’s concerns, the Government has agreed that it will not implement the new system for repossessing properties ‘until we judge sufficient progress has been made to improve the courts’.

It added: “That means we will not proceed with the abolition of section 21, until reforms to the justice system are in place.”

Annual cycle of short-term student tenancies.

The Government has also accepted the NRLA’s suggestion for a new ground for possession that would protect the annual cycle of short-term student tenancies.

The NRLA had argued that by scrapping fixed-term tenancies, neither landlords nor students would have any certainty that properties would be available to rent at the start of each academic year.

The Government said it would ‘introduce a ground for possession that will facilitate the yearly cycle of short-term student tenancies’ which ‘will enable new students to sign up to a property in advance, safe in the knowledge they will have somewhere to live the next year’.

‘Will only work if it has the confidence of responsible landlords’

The NRLA’s chief executive, Ben Beadle, said: “Reform of the rental market will only work if it has the confidence of responsible landlords every bit as much as tenants.

“This is especially important given the rental housing supply crisis renters now face.

“Following extensive campaigning by the NRLA, we welcome the approach taken by ministers to ensure court improvements are made before section 21 ends.”

He added: “The Government is also right to protect the student housing market.

“However, more is needed to ensure student landlords are treated the same as providers of purpose-built student accommodation.

“We will continue to engage positively with all parties as the Bill progresses through Parliament.”

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