Renters’ Reform Bill to abolish Section 21 in England
At the state opening of Parliament on 19 December 2019, the Queen’s Speech announced a Renters’ Reform Bill that will abolish the use of ‘no fault’ evictions by removing Section 21 of the Housing Act 1988 and reforming the grounds for possession.
Renters’ Reform Bill — Section 21 to be abolished
At the state opening of Parliament on 19 December 2019, the Queen’s Speech set out Boris Johnson’s Government’s “people’s priorities” announcing a Renters’ Reform Bill that will abolish the use of ‘no fault’ evictions by removing Section 21 of the Housing Act 1988 and reforming the grounds for possession.
What the UK Government is proposing:
- Abolishing the use of ‘no-fault’ evictions by removing Section 21 of the Housing Act 1988 and reforming the grounds for possession.
- Give landlords more rights to gain possession of their property through the courts where there is a legitimate need for them to do so by reforming current legislation.
- Work to improve the court process for landlords to make it quicker and easier for them to get their property back.
We believe that in the absence of any meaningful plan to boost the level of social housing in this country, the abolition of Section 21 will impact good landlords in the private rented sector who house the nation.
If Section 21 is scrapped, Section 8 must be reformed, and a new specialist housing tribunal created. Without this, supply will almost certainly fall which will have the consequential effect of raising rents and will further discourage new landlords from investing in the sector.
A new deal for renting: resetting the balance of rights and responsibilities between landlords and tenants
The UK Government launched a consultation in July 2019 seeking views on implementing the removal Section 21 in England, as well as improving Section 8 eviction grounds. We submitted a comprehensive response to the UK Government’s consultation on planned changes to the eviction process in England.
A new deal for renting consultation
We submitted a comprehensive 39-page document in response to the Government’s consultation on planned changes to the eviction process in England.
Changes to the current system should only take place following the development of specialist housing courts and mandatory grounds allowing landlords to regain possession of their property—they must be fair to both tenants and landlords.
To mitigate any negative impacts of the proposals, the Government must:
- Consider introducing a Housing Court to ensure that the proposals are workable or adequately resource and amend the existing Courts system.
- Use a technological solution, possession claims must be digitised and taken online.
- Look to make all grounds for possession, both existing and new, mandatory in order to effectively compensate for the removal of Section 21.
- Ensure automatic High Court Enforcement so landlords are granted an automatic right to have their Possession Order executed by a High Court Enforcement Officer.
- Implement a pilot scheme before a national rollout of the proposals to evaluate the effectiveness of the new system.
Section 21, Section 8 and Section 13
These common tenancy notices are Government prescribed forms available to download from their website. This resource offers a little more information into each one and where you need to go to download them.
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UK Government berated on court reforms for Section 21
The Levelling Up, Housing and Communities Committee (LUHCC) has objected to suggestions that delays to the ban on ‘no fault’ evictions are the result of recommendations made in the Committee’s Reforming the Private Rented Sector report. Committee Chair, Clive Betts, MP, stated it was difficult to understand the lack of urgency and transparency around court reforms.
Second reading debate hangs in the balance
Rt Hon Michael Gove MP reiterated the tone of the UK Government’s response to the Levelling Up, Housing and Communities Committee, published Friday 20 October, with repeated references to balancing the needs of tenants and landlords in the progress of the Renters (Reform) Bill through the UK parliament.
Abolition of Section 21 to take place after substantial court reforms occur
With the Renters (Reform) Bill receiving its Second Reading in the House of Commons today, 23 October 2023, the UK Government has responded to recommendations made by the Levelling Up, Housing and Communities Committee (LUHCC), promising to align the removal of Section 21 with court improvements, protect the right of landlords to set rents in line with the market, and ensure the student market is protected with a new ground to guarantee landlords can gain possession each year.
Removal of Section 21 must go hand in hand with essential court reform
In a letter to the Lord Chancellor and Secretary of State for Justice, Alex Chalk KC MP, Propertymark CEO, Nathan Emerson has laid out the potential consequences of failure to prepare the legal system for the introduction of Renters’ Reform measures and offered to support the UK Government in ensuring reliable access to justice.
Propertymark supports ASB Awareness Week 2023
Running from 3-9 July, the theme of the week is Know Your Rights. Recent YouGov research commissioned by Resolve found that almost 1 in 5 people have had to consider moving home because of the impact ASB was having on them; 1 in 10 have actually moved. Despite this, over half who were either a victim or witness of ASB did not report it.
Renting Homes (Amendment) (Wales) Bill extends minimum notice periods from two to six months
On 23 February 2021, the Welsh Parliament passed the Renting Homes (Amendment) (Wales) Bill that will extend the amount of notice landlords have to give from two to six months. Under the rules, rental contracts will be simplified and standardised with model contracts available. It will also mean the minimum contract a tenant can be given will be for 12 months.
We raised a number of concerns as the legislation made its way through the Welsh Parliament.
Extension of the minimum notice period
This will give all tenants, including those who flout the law, a minimum of 12 months. The proposal ignores issues with problem tenants and the impact on surrounding properties and the landlord or letting agent.
Changes to fixed term standard contracts
Landlords using fixed term contracts will be left with little option to regain possession of their property at the end of the term unless the court decides that the tenant has breached the terms of their contract.
Placing a six-month restriction on issuing a notice following the expiry of a previous notice
This proposal ignores emergency situations where the landlord may be required to regain possession of their property at short notice. It places further restriction on the already limited Section 173 procedure.
The use of break clauses in fixed term contracts
Ensuring a break clause cannot be used in contracts with a duration of less than 24 months, and cannot be activated until month 18, as well as landlords being required to serve a six month notice in relation to a break clause will create less flexibility for tenants and provide less protection for landlords.
Without reform to the existing courts system for housing cases, including making the eviction process simpler, quicker and more cost-effective, we do not believe that the legislation will achieve a better eviction process.
The Welsh Parliament’s approval of the Renting Homes (Amendment) (Wales) Bill will introduce significant changes to the way the private rented sector operates in Wales. Collectively, having one standardised legal framework is going to enable everyone to operate in exactly the same way, giving clarity on rights and responsibilities through standard written contracts.
While in some cases these changes will provide more financial security for landlords, it also means it will take landlords 12 months to reclaim their property in the case of 'no fault evictions', which is a hammer blow to the sector. We call on the Welsh Government to now stick to its commitment for at least a six-month lead time, or longer, in light of COVID to allow agents and their landlords in Wales to prepare for the upcoming changes.
Related news and resources
ARLA Propertymark’s concerns raised in Welsh Parliament
During a plenary debate on the general principles of the Renting Homes (Amendment) (Wales) Bill on 13 October 2020, ARLA Propertymark was referenced by Mark Isherwood, Housing Spokesperson for the Conservatives, stating our arguments that the Bill will not secure the security of tenure and will make letting a less viable business for landlords, which in turn could push prices up if there is less housing stock available.
Renting Homes (Amendment) (Wales) Bill
ARLA Propertymark has responded to the Welsh Assembly’s Equality, Local Government and Communities Committee’s consultation on the Renting Homes (Amendment) (Wales) Bill.
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