Theresa May announces she will ban section 21

Theresa May announces she will ban section 21

7:41 AM, 15th April 2019, About 6 years ago 89

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Prime Minister, Theresa May, has announced she plans to ban the use of Section 21 or what is termed as so-called ‘no-fault evictions’ in England.

The PM said: “Everyone in the private sector has the right to feel secure in their home, settled in their community and able to plan for the future with confidence.”

“But millions of responsible tenants could still be uprooted by their landlord with little notice, and often little justification.

“This is wrong and today we’re acting by preventing these unfair evictions. This important step will not only protect tenants from unethical behaviour, but also give them the long-term certainty and the peace of mind they deserve.

“Landlords will still be able to end tenancies when they have legitimate reasons to do so, but they will no longer be able to unexpectedly evict families with only eight weeks’ notice.”

Communities secretary James Brokenshire said:

“Government was making the biggest change to the private rental sector in a generation. By abolishing these kind of evictions, every single person living in the private rented sector will be empowered to make the right housing choice for themselves not have it made for them. Evidence showed that so-called Section 21 evictions were one of the biggest causes of family homelessness.

“And this will be balanced by ensuring responsible landlords can get their property back where they have proper reason to do so.”

A Ministry of Housing spokesman said: “Court processes will also be expedited so landlords are able to swiftly and smoothly regain their property in the rare event of tenants falling into rent arrears or damaging the property meaning landlords have the security of knowing disputes will be resolved quickly.”

Shadow Housing Secretary John Healey cautiously welcomed the Tory proposals, but said they:  “Won’t work if landlords can still force tenants out by hiking the rent. For nine years, the Tories have failed to tackle problems facing private renters.

“Tenants need new rights and protections across the board to end costly rent increases and substandard homes as well as to stop unfair evictions.”

NLA Chief Executive, Richard Lambert, said: “Landlords currently have little choice but to use Section 21. They have no confidence in the ability or the capacity of the courts to deal with possession claims quickly and surely, regardless of the strength of the landlord’s case.

“England’s model of tenancy was always intended to operate in a sector where Section 21 exists. This change makes the fixed term meaningless, and so creates a new system of indefinite tenancies by the back door.

“The onus is on the government to get this right. It’s entirely dependent on the government’s ability to re-balance the system through Section 8 and court process so that it works for landlords and tenants alike. The government should look to Scotland, where they reformed the court system before thinking about changing how tenancies work. If the Government introduces yet another piece of badly thought-out legislation, we guarantee there will be chaos.”


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Judith Wordsworth

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10:41 AM, 15th April 2019, About 6 years ago

I believe that S21 is not applicable to "temporary tenancies", ietenancies of less than 6 months ie 5 months. So let's all on renewal provide Temporary Tenancies only. I am seriously considering doing this in future on renewal. Yes a bit more paperwork and effort getting tenancies signed but worth it.

Luke P

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10:44 AM, 15th April 2019, About 6 years ago

Reply to the comment left by Judith Wordsworth at 15/04/2019 - 10:41
I'm not sure there is such a thing. I'm fairly certain the legal minimum for any tenancy (holiday lets/hotels are not tenancies) is six months.

AJ

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10:54 AM, 15th April 2019, About 6 years ago

Reply to the comment left by Graham Bowcock at 15/04/2019 - 10:26
Rent caps are the best way to demolish a city, without bombing it

Judith Wordsworth

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10:56 AM, 15th April 2019, About 6 years ago

Reply to the comment left by Luke P at 15/04/2019 - 10:43
A friend who is renting has a "Temporary Tenancy Agreement" from her Landlord for this very reason.

If its ok for a local council to produce these then must be legal lol
https://www.tendringdc.gov.uk/sites/default/files/Non%20secure%20tenancy%20agreement.pdf

Presume could not just set it up as a weekly but monthly or bi-monthly or even quarterly periodic temporary non secure tenancy I would have thought. But then weekly might be better as only having to give a 4 week Notice to Quit.

Having found this tenancy agreement I will be altering mine to incorporate some of its clauses eg if tenant doesn't notify of a repair then the cost of the repair is their responsibility.

Gromit

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11:00 AM, 15th April 2019, About 6 years ago

Reply to the comment left by Judith Wordsworth at 15/04/2019 - 10:56
It's one be rule for us and another for them.

The Government will eventually plug any work around a or loop holes that you may find.

Whiteskifreak Surrey

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11:00 AM, 15th April 2019, About 6 years ago

Reply to the comment left by Judith Wordsworth at 15/04/2019 - 10:56
Interesting.
It is dated 2012, so I wonder if still in force. But I am afraid tenants might be reluctant/unwilling to sign something like that with a PRS LL. The document states "We owe you a duty.." hence they can base that document on this principle. But PRS LLs do owe nothing to any prospective tenants. Any comments on that document?

paul robinson

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11:11 AM, 15th April 2019, About 6 years ago

Reply to the comment left by Piers Calascione at 15/04/2019 - 09:29
Yes I can't see how it would work, or the sense in the student or young proffesional market when a joint tenancy is signed for a fixed period?

But then again nor could I see the sense of banning ALL upfront costs, even a modest £50 and allowing timewasting viewers to get all their tiny 1 week holding deposits back.

steve p

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11:13 AM, 15th April 2019, About 6 years ago

Reply to the comment left by Alistair Cooper at 15/04/2019 - 09:09
I think they said that tenants can be removed if the property is to be sold so cant see lenders having a problem.

Simon Williams

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11:20 AM, 15th April 2019, About 6 years ago

Where open ended tenancies are the norm, for example in Germany, landlords are much more demanding about requiring references from a prospective tenant. I'm told many tenants keep a detailed rental life history profile to prove their credentials.
In the UK, landlords will need to get much better at weeding out potential problem tenants during the selection process and be much more choosy about who they let in. This will be burdensome, but it must be done.
The good news is that if investment falters further, many landlords will have plenty of choice as to who they take on because of under-supply.
And let's remind ourselves that in Germany and pretty much every other major European country, landlords can fully deduct mortgage interest against tax and in Germany, they can sell up after 10 years free of CGT. So you can keep supply levels up even in the teeth of changes like ending section 21, if continental style incentives were on offer to landlords. Trouble is they won't be.
It's worth having a look at the 18 grounds for possession under the Scottish system. It may be a clue to how things might shape up here. Most things are covered, but what is most striking is that where a tenant raises arrears issues being due to benefit delays, the judge must take that into consideration. Put simply, if you have benefit tenants and they can raise even a vague case that the arrears aren't "their fault", then you won't be able to evict.
Under the proposed open ended tenancy system, I cannot see how I can rent either to families or benefits claimants as the risks would be just too high. Judges virtually never evict families and benefits claimants will always have a higher arrears rate and then a cast iron legal defence if the arrears is due to delay by the paying authority.

paul robinson

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11:33 AM, 15th April 2019, About 6 years ago

Reply to the comment left by Simon Williams at 15/04/2019 - 11:20
Thanks will have a look at the Scottish system.

I rent to young professionals, a group tenancy on a fixed term, which most like as easy to plan and have 4 other housemates for that fixed term.

During the fixed term, if one needed to leave, we would normally assign a new housemate for the remainder of the fixed term.

But how is that going to work if 1 tenant wanted to leave at any point during the tenancy, will it bring that tenancy to an end, with just 4 week notice? – can of worms and admin hell - costly!!

Been said plenty of times before, but the more that get put onto decent landlords, these cost have to also be passed onto our decent tenants.

We had a good chance of getting rid of a problematic tenant with section 21, do it ourselves with minimal extra costs – but are we now going to have to pay more to go through the courts?

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