0:01 AM, 23rd October 2023, About 9 months ago 44
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One landlord organisation is calling for amending Section 21 rather than abolishing it.
Ahead of its presentation next month, iHowz has penned a letter to MPs and Lords laying out their plans to revamp Section 21.
iHowz says they are very concerned about the potential unintended consequences of the removal of Section 21.
iHowz argues many landlords use Section 21 as a vital mechanism within their toolkit.
It warns: “Sensible, professional landlords use the S21 as a ’backstop’ mechanism, allowing them to manage the risk of housing a vulnerable person, who, on paper, could be an acceptable risk.
“These vulnerable tenants include the homeless, offenders, as well as the economically disadvantaged.
“Many of these landlords offer with the caveat that the vulnerable person will be given a chance, as long as they pay the rent in a timely manner and don’t cause Anti-Social Behaviour (ASB)
iHowz say Section 21 gives a chance for landlords to reclaim their property.
“Many tenants accept a second chance because the S21 allows landlords recovery of the property, particularly in the event of ASB.”
The organisation added: “iHowz is advised by many members that, in the event of losing the S21, they will substantially increase their due diligence before offering a new tenancy. This due diligence is likely to extend beyond financial and previous landlord references, with landlords requiring tenants to provide a guarantor.”
iHowz suggests a two part amendment to Section 21.
“We would like to see a sliding scale of notice required, based on the time a tenant has been in situ, in association with a recompense scheme.
“The sliding scale would recognise loyal tenants, by providing them more time to find a new home and plan their move to accommodate other factors, such as schooling.
The landlord organisation believe that in most cases a tenant who has been in situ for a number of years is most likely to be served a S21 notice by a landlord who needs the property back, to sell, refurbish or improve it.
iHowz said :“Many tenants have limited or no savings, so making the last two months of the tenancy rent free provides them funding to use for moving costs and any deposit or rent in advance for their new home.”
iHowz believe these actions will be a significant improvement for tenants and landlords by making the process fairer whist retaining the only proven mechanism for removing antisocial tenants, who’s actions blight the lives of tenants and their neighbours.
The landlord organisation said: “We strongly believe that all these measures taken together would give tenants substantial security of tenure, whilst allowing landlords to offer to a potentially bad-risk person, with the aspiration that they will eventually integrate into the mainstream community.”
When asked about how landlords would view the proposals to give up two months rent and the need for longer notice to regain possession, iHowz highlighted that their proposal would allow landlords to continue to have access to S21.
The landlord organisation said landlords would then not have to rely on the government’s proposed new Section 8 grounds and improvements to the court process.
iHowz said: “The certainty of the current S21 process is worth the cost of these concessions, given that waiting for the courts will take many months, during which time tenants often stop paying their rent.
“This provides them an incentive to move on while recognising that we are asking them to leave. With the second reading of the Renters Reform Bill scheduled for this week the proposal has assumed new urgency.”
Crouchender
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Sign Up14:40 PM, 23rd October 2023, About 9 months ago
I have never used S21 until now. I am selling a place in 6 MONTHs time (so just issued S21) but given informal verbal notice about 3 months ago (9 month notice in total).The tenant has only been with me for about a year. I chose to freeze his rent for the next 6 months as recompense as he has to move again and he was not expecting to move but my circumstances have changed (as I need to pay down loans as section24 badly affecting me my other remortgages)
So in practice I have done slightly more than what iHOWz are proposing so read their letter properly to make your own assessment but it seems viable alternative to me.
Seething Landlord
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Sign Up15:18 PM, 23rd October 2023, About 9 months ago
Reply to the comment left by TheMaluka at 23/10/2023 - 12:53
Thanks Maluka but the anecdotal evidence currently available indicates that to a large extent landlords are abusing S21 by using it when they could equally well use S8. Collecting data would therefore simply confirm this abuse and reinforce the arguments for the abolition of S21. You seem to be suggesting that it would be collected anonymously or would somehow not be linked with any court case dealing with the eviction. Bearing in mind that one of the main arguments in favour of abolition is the claim that it is used by rogue landlords, why do you think that anyone would accept the validity of data collected in that way? In my view from planet zog it's a non-starter.
Seething Landlord
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Sign Up15:20 PM, 23rd October 2023, About 9 months ago
It's all very well to do it voluntarily but making it a requirement is a totally different kettle of fish.
Monty Bodkin
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Sign Up15:39 PM, 23rd October 2023, About 9 months ago
Reply to the comment left by TheMaluka at 23/10/2023 - 12:53
"At present NOBODY has any idea why a section 21 is used."
https://www.nrla.org.uk/research/deep-insight/s21-and-landlord-experience#:~:text=The%20decision%20to%20issue%20a,of%20a%20Section%2021%20notice.
The reasons for landlords issuing Section 21 notices are overwhelmingly due to the actions of tenants: our survey showed over 70% of landlords issuing Section 21 notices did so because of rent arrears. The decision to issue a Section 21 notice is often because of several factors rather than a single cause.
Thus one-third of Section 21 notices were issued because of property damage. Anti-social behaviour (28%) or other, illegal, activity (17%) are also key reasons prompting the issuing of a Section 21 notice.
GlanACC
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Sign Up16:53 PM, 23rd October 2023, About 9 months ago
I think giving a reason for S21 is a good idea, it will highlight evictions for rent arrears. As for this iHowz lot, are they a division of Shelter in disguise
rebecca anelay
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Sign Up16:56 PM, 23rd October 2023, About 9 months ago
Reply to the comment left by TheMaluka at 23/10/2023 - 12:10
How about because "I want my house back because I have worked hard all my life to buy it and the last time I checked the dictionary definition of renting is that you give something back at the agreed time.
There are some amazingly generous people on this site and some very good landlords ( I used to be one!) but the only way you are guaranteed a house for life when renting is a council house...and the government has sold them all!
So stop asking hardworking landlords to give away money to people who more often than not trash their property .
Stop trying to make landlords responsible because people have no savings/ spent it all on their own life choices and START demanding the government build council housing again.
...But in my experience most tenants won't walk down the street to vote because...it's raining, they'll miss Love Island, they can't open the door because it's blocked by binliners full of rubbish etc etc.
When the Tories sold off Council Houses ( to many who sold on and ppocketedketed the cash) it was part of their master plan to get out of housing the masses .. unfortunately You've now destroyed the Businesses that were housing the masses. So keep on bashing us, asking us to house you for free and don't waste your time worrying about section 21...Labour won't accept it in any form!!!
GlanACC
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Sign Up17:01 PM, 23rd October 2023, About 9 months ago
Reply to the comment left by rebecca anelay at 23/10/2023 - 16:56
You have valid points, but a lot of landlords bought their houses from ex-council renters who sold the property to them.
Rod
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Sign Up17:14 PM, 23rd October 2023, About 9 months ago
Reply to the comment left by Jo Westlake at 23/10/2023 - 13:29
Thanks for providing this analysis.
Polly Neate was doing her best, on this morning's Radio 4 Today programme (06:49), to suggest that ending S21 would reduce homelessness and claims of landlords leaving the market are overstated.
She went on to claim that many S21 claims are from landlords to evict tenants claiming disrepair, wrapping up by stating that a register of landlords will ensure safe homes.
In the last DLUHC committee hearing on the Renters Reform Bill it was highlighted to the Shelter representative that S21 should not be blamed for homelessness, as tenants can in most cases also be evicted under S8. It is the lack of homes available for rent which is the primary factor responsible for the rise in homelessness.
I'm sure a quick search of the Shelter website will produce guides highlighting how revenge evictions, lack of electrical and gas safety documentation and other compliance requirements will result in any S21 claim being thrown out and a no-win, no-fee claim for rent repayment, or similar.
The landlord register is already coming closer as the RRB introduces a PRS ombudsman and the Property Portal
The second reading of the RRB is scheduled for today but, as I conclude my comment, seems to have taken lower priority than other parliamentary business.
Seething Landlord
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Sign Up17:46 PM, 23rd October 2023, About 9 months ago
GlanACC The best way to highlight evictions for rent arrears and alert future landlords is to use the prescribed method i.e. S8.
Seething Landlord
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Sign Up17:51 PM, 23rd October 2023, About 9 months ago
Is there any reason why details of the comment being replied to are no longer shown? Without this information it is hard to make sense of some of the posts.