Fact sheet: Companies Act 2006, Section 44 – Court of Appeal decision

The Welsh Government has confirmed it will not proceed with proposals that would have required landlords to pay tenants compensation when issuing a Section 173 possession notice. The decision follows extensive consultation and lobbying from Propertymark and other sector stakeholders, who welcomed the move as a win for common sense and fair reform.

Property agents and landlords across England and Wales are increasingly facing prolonged delays when attempting to evict problem tenants—an issue being described as a postcode lottery due to the inconsistent and regionally varied response times within the County Court system. In response, the High Court Enforcement Officers Association (HCEOA), in partnership with Propertymark and other stakeholders, have launched a campaign to speed up possessions, calling on landlords to consider High Court enforcement as a more efficient solution in the most severely affected areas.

The latest debate over the Renters’ Rights Bill has brought attention to concerns frequently raised by our members, as Peers strongly echoed our longstanding warnings that the Bill risks putting the justice system under pressure following the removal of Section 21. The legislation proposes shifting all possession proceedings to Section 8, a mechanism that is far more reliant on timely and efficient court intervention.

Propertymark has submitted a response to the House of Commons Public Bill Committee's call for evidence on the Bill, focusing on key areas that affect the property sector, particularly anti-social behaviour (ASB) and the protection of vulnerable tenants from exploitation such as cuckooing and county lines activity. Our key message is clear: no matter how strong the tools , they will only work if landlords and property agents are informed and engaged in the implementation.