Landlord organisation’s bold bid for Section 21 reform

Landlord organisation’s bold bid for Section 21 reform

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.

Landlords use S21 as a backstop mechanism

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.”

Two months rent free

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.”

Landlord Considerations

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.”


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Nathan

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2:23 AM, 24th October 2023, About 9 months ago

Rebecca - completely agree. Over the years we seemed to have forgotten personal responsibility with bad tenant behaviours seemingly ignored by the left wing activists. Prolly unfortunately has been on a mission to justify her huge salary and the government funding to Shelter- which is used for litigation against those landlords who have overlooked some paperwork. Harsh world for some but others let off!

Nathan

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2:32 AM, 24th October 2023, About 9 months ago

Seething landlord - you’ll have to ask Mark Alexander why the replies do not state who your replying to any longer. I agree it makes reading the posts more difficult to comprehend. In the meantime it looks like we have to write whom we’re addressing ourselves.
Mark has been rather pre occupied these last month’s fighting against Dan Neidle at Tax Policy Associates so May have taken his eye off the ball.

Additionally I think the suggestion by IHowz is ridiculous but if it guarantees your property back vacant after two months then it would be worth it.

I’d prefer that the courts worked better and maybe the Government could fund them and create a separate housing court administration that worked better rather than funding Shelter at around £60M!!

Government solutions to problems rarely work though as they historically don’t listen/don’t take advice from the people on the ground in the industries.....unless of course they’re a big corporation that can persuade via party donations or personal promises to ‘mates!!!!!

Clint

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9:57 AM, 24th October 2023, About 9 months ago

Reply to the comment left by Seething Landlord at 23/10/2023 - 12:27
I fully agree with Maluka. Rent arrears is one of the main reasons that I often use the S21 for and have used it for ASB as well. I have for a number of years thought that there should be a section added asking the reason why the section 21 is being used. There could also be a section which states words to the effect "Do not want to give a reason" for those that adamantly feel they should not give a reason for whatever reason I don’t know.

I do realise that one should or could use a S8 notice for rent arrears, but I believe it requires more expertise.

It is far better than being called a "no fault possession". In my 27 years of renting, I have never used the section 21 notice for no reason and I believe there must be a miniscule of people using a section 21 for no reason.

I was listening to LBC yesterday where the main reason given by tenants from what I heard was because the landlord wanted to increase the rent. This sounds silly to me as, the first thing to do would be to inform the existing tenant that the rent would be going up and only then evict the tenant if, it is unaffordable to continue with the same tenant due to high costs. The tenants that came on LBC seemed to indicate that they were evicted and not given the option of staying on with an increase of rent and this was the reason they were being evicted. This does not make financial sense as there would be the empty period, advertising and other costs which would be lost in the process of evicting in order to get a higher rent.

Seething Landlord

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11:34 AM, 24th October 2023, About 9 months ago

Reply to the comment left by Clint at 24/10/2023 - 09:57
Clint, you are overlooking the fundamental point that the whole purpose of S21 is to allow a landlord to regain possession without giving a reason.

GlanACC

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8:55 AM, 26th October 2023, About 9 months ago

Reply to the comment left by Ross Tulloch at 23/10/2023 - 14:21
You might be better selling up and buying classic cars and letting them appreciate.

Russell Cartner

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17:54 PM, 26th October 2023, About 9 months ago

Reply to the comment left by TheMaluka at 23/10/2023 - 12:10
Complain to
michael.gove.mp@parliament.uk

Jessie Jones

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11:44 AM, 28th October 2023, About 9 months ago

Reply to the comment left by TheMaluka at 23/10/2023 - 12:10
Having to give a reason just creates an issue that people then want to argue over. It can often be that there has been a breakdown in the landlord/tenant relationship. The landlord is just fed up with finding that the bins aren't being put out, dog mess in the garden, much higher than necessary maintenance because the tenants open the door with their feet, they dry their clothes on the radiators with the windows shut and complain about the wallpaper being soaked. Smell of cigarette smoke, and / or cannabis, which of course they deny. Front hedge not being cut for 3 years, sofa being stored in the garden.
Minor maintenance issues impossible to deal with as tenant fills the property to the brim with clutter. Gas Safe plumber attends but the tenant forgot and went to the pub for the day, or has dirty pots piled on the worktop so high that the plumber can't get to the boiler and charges for a failed visit.
Some tenants are just too hard to deal with. Imagine having to put any or all of the reasons on your section 21 notice, and then having to argue at court about whether the damp issue is because of tenant behaviour or your poor maintenance. It would just lead to more and more adjournments and higher cost to the landlord as they ask their plumber to give evidence about how the tenants behaviour stopped them from doing their work.
If you've ever tried to do some maintenance and found that you can't even wash your hands because the kitchen sink is full of dirty pots, the bathroom sink is full of last weeks changed nappies and the bath is full of curtains as the poles have all mysteriously 'fallen' off the wall and the bath seems to be the best place to store them, then which one of these options would a Court like to know about? Sometimes it is just necessary to bring a tenancy to an end without giving a reason.

TheMaluka

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12:12 PM, 28th October 2023, About 9 months ago

Reply to the comment left by Jessie Jones at 28/10/2023 - 11:44
Without giving a reason which is considered by the court. There is nothing wrong with giving a reason for data collection and subsequent analysis.

Russell Cartner

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12:23 PM, 28th October 2023, About 9 months ago

Reply to the comment left by TheMaluka at 28/10/2023 - 12:12
The idea of sec 21 is that you don't have to give a reason

Jessie Jones

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12:29 PM, 28th October 2023, About 9 months ago

Reply to the comment left by Russell Cartner at 28/10/2023 - 12:23
Quite. Because giving a reason isn't always a wise idea, especially when you really want to repossess because the tenant is just an awful person to deal with.
The difficulty is that organisations like Generation Rent, or Shelter then get to project their own narrative, which is that it's 'so landlords can put the rent up', which is rarely the case as rent can be increased right up to the market rent anyway.

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