Removal of Section 21 won’t see a big reduction in tenant evictions
PayProp UK boss Neil Cobbold says no amount of rental reform will bring down homelessness if the Renters (Reform) Bill causes landlords to exit.
The removal of Section 21 is unlikely to bring about a big reduction in tenant evictions – even if there is court capacity to process all of the evictions now falling to Section 8, research from PayProp UK reveals.
If the Renters (Reform) Bill becomes law, tenants will no longer receive ‘no fault’ eviction notices as Section 21 is due to be abolished, meaning all evictions would take place under a ground specified in Section 8 of the Housing Act 1988.
HOMELESSNESS
But politicians and industry figures have warned that this could well lead to an increase in homelessness.
But research from PayProp UK shows that the three most common reasons for lettings professionals issuing a Section 21 notice will also be eviction grounds under the proposed reforms to Section 8 such as rent arrears or the landlord wanting to sell the property or to move themselves or a close family member into the property.
I fear they will be disappointed when we don’t see a significant reduction in homelessness.”
Neil Cobbold (main picture), PayProp UK’s Managing Director, says: “Housing campaigners have put a lot of the industry’s ills on Section 21. I fear they will be disappointed when the reforms come to pass and we don’t see a significant reduction in homelessness.
“Our research shows that Section 21 is being used because it was the easiest way of getting the property back for the landlord, but that means that the tenant could move on without the stigma of a court judgment for arrears or antisocial behaviour.
TENANT’S RECORD
Cobbold adds: “After the Renters (Reform) Bill those reasons for eviction will be clearly on the tenant’s record.
“When they look to get a new privately rented property, with supply outstripping demand, the vast majority of English landlords are not going to rent their property to a person with an at-fault eviction on their record.
“Landlords need confidence that they can continue to invest in the sector and regain possession of their properties efficiently through the courts if needed. If landlords leave en masse, then no amount of rental reform will bring down homelessness.”
Mr Cobbold is of course entirely correct in his analysis.
The renter Reform Act is an appalling, ill-thought out piece of legislation based on falsehoods driven by political activists and will do less than nothing to improve the lot of tenants.
In fact it will undoubtedly make the situation far far worse and its the tenants who will suffer the most.
What is frankly incredible is our ruling class cant see this and the catastrophic car crash that is about to be implemented.
There will be a HUGE Reduction, … in the number of properties available to rent and we’re already seeing that now.
Tenants will know there isn’t the properties available to move too. which will exacerbate supply problems.
Its going to get a Lot, lot worse for Tenants.