Propertymark urges clarity on Section 21 abolition

Propertymark is calling on the Labour Government to provide clear details on how it plans to abolish Section 21 ‘no-fault’ evictions under the Renters’ Rights Bill.

It is also calling for a legal mechanism to prevent the court system in England and Wales from becoming overwhelmed.

During his speech, King Charles stated: “Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions, and reforming grounds for possession.”

Propertymark has previously warned that eliminating Section 21 without a viable alternative could lead to significant delays and costs for landlords and tenants.

Renters (Reform) Bill caused great uncertainty

The organisation’s chief executive, Nathan Emerson, said: “The Renters (Reform) Bill caused great uncertainty for many landlords when it was introduced by the last government, so we hope that the new UK government’s revised version of this legislation clarifies what new mechanism will be implemented if they succeed in abolishing Section 21.

“Whilst Propertymark supports renters having firm rights to challenge unfair practice, any new legislation must strike a fairness for all involved.

“Ultimately, there is a concerning lack of housing stock within the marketplace, and there needs to be clear pathways and support for investment to help boost supply and provide choice for prospective tenants when it comes to choosing a new home.”

Conservatives’ original Renters (Reform) Bill

Last December, Propertymark presented evidence to the Public Bill Committee on the Conservatives’ original Renters (Reform) Bill, showing that private landlords were concerned about the abolition of Section 21 without a robust replacement.

Section 21 notices allow for ‘accelerated’ claims that bypass the court system.

The Conservatives’ bill proposed expanding the grounds for possession under Section 8, which would have resulted in more cases going through the courts.

It remains unclear how Labour’s plans will address this issue.

Increasing regulatory and financial pressures on landlords

Propertymark is also warning that increasing regulatory and financial pressures on landlords could deter investment in the private rented sector.

This could, potentially, it says cause many landlords to exit the market and discouraging new ones from entering – and lead to fewer homes to rent and higher rents.

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