More than a quarter of landlords who evict tenants do so to sell up

It has been revealed that 26% of landlords who have issued a Section 21 notice of eviction to their tenants in the last 12 months have done so because they plan to sell their property.

The survey was carried out by Landlord Action, a housing law specialist and part of the Hamilton Fraser Group, and they also reveal that 24% of those who plan to evict their tenants in the next 12-18 months say they will do so because the increasing legislative burden means they have decided to sell.

The survey of more than 1,500 landlords asked them whether they had served a Section 21 notice in the last 12 months, to which 34% responded yes.

The most common reasons given were rent arrears (31%), landlords selling their property (26%) and anti-social behaviour (22%).

Just 2% of landlords said it was to move back into the property.

Planned to issue a Section 21 notice of eviction

Landlords were also asked whether they planned to issue a Section 21 notice of eviction to their tenants in the next 12-18 months before the Renters Reform Bill comes into force and which could prevent landlords from using Section 21.

The survey reveals that 28% of landlords said yes, and a further 28% stated they were not yet sure.

The vast majority (42%) said the reason is based on concerns that they will be unable to gain possession easily in the future, and 24% attributed their decision to increasing legislation driving their decision to sell up.

Just 10% of landlords said that it was because their tenants are already in rent arrears, 6% are currently experiencing anti-social behaviour, and only 2% of landlords said they wish to move back into the home.

‘Unintended consequences of abolishing Section 21’

Paul Shamplina, founder of Landlord Action and the chief commercial officer for the Hamilton Fraser Group, said: “The response to our latest survey paints a very clear picture of the unintended consequences of abolishing Section 21.

“More than a quarter of tenants who have or will be asked to leave their rental properties (via receipt of a Section 21 notice), are in such a position not because they have done anything wrong but because landlords fear they will be unable to gain possession of their property easily in the future, if their circumstances change.”

He added: “Competition for rental properties is already at an all-time high, and we could be heading towards a rental stock crisis.

“It has been reported that in some parts of London, for example, tenants are offering up to a year’s rent in advance. But for most, this simply isn’t feasible.

“Whilst we don’t know how many of the properties sold will remain in the buy to let sector, it’s clear that tenants will ultimately suffer as the combination of pressures forces rents to continue to rise.

“Landlords need reassurance and clarity on the future of evictions soon if the sector is to avoid a deluge of evictions and homelessness.”

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