The Renters’ Rights Bill is currently making its way through parliament.
The Bill will reform the private rental sector in England and Wales and is expected to receive royal assent in spring 2025, coming into force in stages with full implementation likely by the end of the summer.
Rent increase limits, prohibiting discrimination and the introduction of a new private rented sector landlord ombudsman are all key changes set to be introduced under the Bill.
No-fault evictions
The Bill is also set to abolish section 21 of the Housing Act 1998.
Currently, landlords can use section 21 to ask tenants to move out of a property without giving a reason (known as ‘no-fault evictions’).
Under the new rules, no-fault evictions will be scrapped, and landlords must provide clear and expanded possession grounds to reclaim properties.
While this move has been largely welcomed by tenants’ groups and charities, many landlords continue to harbour concerns.
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Court system will be overwhelmed.
After section 21 is scrapped, every eviction will require a court hearing. Many fear that the court system will not be able to handle the increased number of possession claim cases, which will lead to delays and landlords losing rental income.
Membership organisation the National Residential Landlords Association (NRLA) is among those who has argued that a reformed and improved court system, together with improvements to the grounds for possession, should be introduced before section 21 is amended or abolished.
Landlord Action founder Paul Shamplina also fears there will be a “tsunami” of landlords putting in section 21 notices before the ban is implemented.
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Added complexity for evictions.
With the abolition of section 21 evictions, landlords will be forced to rely on section 8 notices to evict tenants. These require landlords to provide a specific reason for the eviction. Tenants can challenge a section 8 notice and landlords will need to go to court to apply for a possession order.
Section 8 evictions are more time-consuming, expensive and complex.
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Reduced access to housing.
Abolishing section 21 might cause more landlords to sell their properties and leave the sector. This could make it more difficult for renters to find properties and cause a ‘black hole’ for those who cannot afford to buy and cannot access social rented housing.
Reduced supply could also result in higher rental prices.
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Landlords will become more risk averse.
The added complexity involved in the eviction process will make landlords more cautious when it comes to tenant selection. Landlords will have to carry out more pre-contract research and rely upon guarantors more than they have in the past.
For an overview of other measures and more information about the Bill, click here to access the government’s Guide to the Renters’ Rights Bill.
Follow the progress of the Renters’ Rights Bill here.
Landlord and Tenant Solicitors Near Me
If you have any questions about landlord and tenant obligations, or need clarification on any part of your responsibilities, get in touch with Berlad Graham LLP.
To speak to our friendly, experienced, professional landlord and tenant lawyers today, please call 0330 175 5655 or email info@bglaw.co.uk.
