Quarter of tenants served eviction notice ahead of new rules
Shock figures reveal the extent of landlord concerns as Section 21's abolition approached, says COHO's Vann Vogstad.
Landlords were increasingly cautious with the ending of Section 21, with more than a quarter of tenants being served notice in the month before the Renters’ Rights Act came into force, it has been revealed.
New analysis by COHO shows eviction notices peaked at 27.1% of tenancies immediately before Section 21 no-fault evictions were abolished.
The property management platform estimates that the legislation contributed to 73,900 additional eviction notices being issued since plans to abolish Section 21 were first announced.
That includes nearly 20,000 in the final month before the new rules took effect on 1st May.
Section 21-related notices historically accounted for just 5.7% of tenancies. That rose above 8% following the initial announcement of reform before reaching 11.4% when it became clear the legislation would be implemented.
Changing attitudes
The company’s Chief Executive and Co-founder, Vann Vogstad (pictured), says the figures are the result of landlords’ changing attitudes to risk rather than a rush to remove tenants.
“What we’re seeing isn’t landlords evicting for the sake of evicting; it’s landlords responding to a shift in risk.
“Without Section 21, dealing with serious arrears or anti-social issues can take months, so some have had to act ahead of that change.
Landlords aren’t looking for perfect tenants; they’re looking for tenants who can pay the rent.”
“Landlords aren’t looking for perfect tenants; they’re looking for tenants who can pay the rent and live without causing issues.
“In most cases, they’ll give people the benefit of the doubt for quite some time.
“Section 21 gave landlords a safety net. It allowed them to stick with tenants through arrears or challenges, knowing there was a final route if things didn’t improve. Removing that option has understandably changed behaviours.”
He adds: “Ultimately, the removal of no-fault evictions will likely make landlords more cautious and selective, which may have wider impacts across the rental market.”
COHO‘s findings are based on analysis of 150,000 tenancies.
Frankly I find those figures very hard to believe. Yes we had an increase but that was to only 4% of live tenancies and we would have expected around 2% as we have had every year for the last 20 plus years. Landlords not investing in the sector is the bigger concern as older landlords move out -as they have always done – younger landlords are just not coming in.
Both Tory and Labour have created a problem for which tenants are suffering.