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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TheMaluka

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12:32 PM, 28th October 2023, About 9 months ago

Yes I agree that you do not have to give a reason that is taken into consideration in determininig the outcome BUT there is no bar to giving a reason in order to collect statistics which I am sure would defeat Shelter in its asinine comments about section 21.

Russell Cartner

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12:41 PM, 28th October 2023, About 9 months ago

You do not and should not give a reason

Seething Landlord

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13:19 PM, 28th October 2023, About 9 months ago

Having to give a reason for a "no reason given" possession claim is Alice in Wonderland stuff and if not compulsory and not open to challenge the data would be of no value anyway.

Data is already collected but nobody believes that it is accurate unless it suits their particular point of view. Do you believe the claims made by Shelter that are based on the data that they have collected? No, and neither do they believe the data relied on by landlords.

TheMaluka

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14:18 PM, 28th October 2023, About 9 months ago

Reply to the comment left by Seething Landlord at 28/10/2023 - 13:19
You have misinterpreted what I have said. There is a need to collect definitive information as to why landlords use section 21. Please propose an alternative approach other than modifying the form to collect the data without prejudice to the outcome of the claim?
Knowledge is power so knowing why landlords use section 21 from data collected by an official source should be of interest to all landlords - that is all except me for I never use section 21 only section 8.

Seething Landlord

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16:02 PM, 28th October 2023, About 9 months ago

Reply to the comment left by TheMaluka at 28/10/2023 - 14:18
No information will be accepted as definitive if it has not been tested in court or given under oath. In any event I do not agree that such information is needed and it would make a nonsense of S21. Why do you think it is needed?

TheMaluka

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16:26 PM, 28th October 2023, About 9 months ago

I will answer your question even although you did not respond to mine.
"Why do you think it is needed?"
To collect data so that landlords can argue for the retention of S21 from a basis of fact rather than conjecture.

Seething Landlord

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17:34 PM, 28th October 2023, About 9 months ago

Reply to the comment left by TheMaluka at 28/10/2023 - 16:26
I did not answer your question because I do not accept the underlying presumption that the data needs to be collected. Why would I suggest how to do something that I do not believe needs to be done and would in any event be counterproductive?

Landlords claim that a high proportion of S21 possession claims are due to rent arrears so how would proving that help to retain it when S8 provides a perfectly good and transparent alternative? Such data would reinforce the call for the repeal of S21. Other common grounds are anti social behaviour and the need to sell or move a family member in to the property, all of which are either already catered for by S8 or will be if S21 is removed.

Clint

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20:06 PM, 28th October 2023, About 9 months ago

I think the option of giving a reason is a great option as the reasoning given by the likes of shelter is that landlords are causing homelessness due to S21 which is a "no fault" eviction. This is from my point of view plain stupidity. I don't know of any landlord that would evict someone for no reason at all which is what a "no fault" eviction implies.
A landlord would use a S21 eviction for ASB, rent arrears, wanting to sell up or wanting the property back for whatever other reason they so wish or anything else. It would only be a "no fault" eviction if the tenant did not do anything wrong which would be the case if the landlord wanted the place back for reasons not pertaining to the behaviour of the tenant. In most circumstances this is not the case.

Seething Landlord

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20:45 PM, 28th October 2023, About 9 months ago

Clint, Shelter claim that one reason for eviction that they come across regularly is retaliation by the landlord after the tenant has complained about the condition of the property. They say that they have data to support their claim so what reason do you think a landlord would give in this situation? Or are you saying that it never happens and Shelter are making it up?

Russell Cartner

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21:08 PM, 28th October 2023, About 9 months ago

Reply to the comment left by Clint at 28/10/2023 - 20:06
Not a good idea

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