Is This the End of No-Fault Section 21 Evictions for Ashford’s 11,678 Tenants?

281 linkedin twitter

In late spring, the Government announced that they were planning to end no-fault evictions for tenants living in private
rented accommodation.

I have since had a number of Ashford landlords contacting me anxious that removing a tenant from their Ashford buy-to-let property in the future had possibly become a lot more problematic. Yet, at the launch of the consultation on the changes to the piece of legislation relating to no-fault evictions (the Section 21 amendments), the Government wanted to assure British landlords that they would be protected by a bolstering of the existing Section 8 legislation: The current Section 8 already allows landlords grounds for recovery of their properties for reoccupation by the landlord, non-payment of rent and other legitimate factors.

4,545 Ashford landlords are affected by this potential change in the law

Comforting for both Ashford landlords and tenants is the fact that competent letting agents very rarely have to evict a tenant. In the event a tenant needs evicting it is normally because rent hasn’t been paid or because the landlord is either selling their buy-to-let investment or moving back into their property themselves – Looking at the consultation – it has been indicated that those grounds will not be removed from section 8 powers during the government’s consultation and the word is they will be bolstered and improved. To put the removal of Section 21 notices into some context…

Only 22,527
section 21 notices made it to Court last year, out the 4.5million private
rented households

Scotland banned no fault evictions (i.e. their own version of a Section 21) two years ago, and the model suggested by Westminster is similar to that of the new Scottish system. Landlords, tenants and agents have accordingly had to adapt north of the border, and there hasn’t been a mass exodus of landlords from the Scottish market.

The call throughout the lettings and legal profession is simply: if the Government is intent on making these changes, we need well-funded courts which specialise in housing and tenancy matters (as there are for family law).

Especially when the landlord manages the property themselves (without an agent), the issue of eviction often comes about from a breakdown in communication between landlord and tenant. The courts could use their mediation skills to make it simpler and faster for tenants and landlords to obtain quick and accessible justice instead of the existing drawn out procedures under Section 8, which helps no one (not even the tenant). This is important as the demand for Ashford rental properties is growing and growing and people need homes to live in:

Ashford needs an additional 216 buy-to-let properties per year for the next decade to meet the demand from Ashford tenants

As an agent in Ashford, I know most Ashford landlords consider buy-to-let as a long-term investment, with the average landlord looking to retain their buy-to-let property for at least 10 years or beyond. Talking to other agents around the country, over 90% of Section 21 notices are made by the tenant, not the landlord. Removing the Section 21 notice could thus affect tenants far more than landlords.

Replacing Section 21 with a system that requires a landlord to firstly have a good reason, and secondly to go through due process, will likely remove the more unprincipled amongst landlords from the property market. That is great news as those landlords will either sell their properties to new or existing buy-to-let Ashford landlords, or to tenants who want to buy them. So, it could be a small win for people looking for a new Ashford home, and a disappointment for landlords simply looking for a cash cow investment who have no care about their property or tenant!

If you are an Ashford landlord and want to know more, whether you are a client of ours, an Ashford landlord with another agent or a self-managing landlord, feel free to either drop me a line ( robert@taylorslettings.co.uk ) or pick up the phone (01233 663266) to chat about the implications of this and other legislative changes on the horizon.

Taylors Residential Lettings Limited, Company no. 6002742, Regd Office: Suite 1, Invicta Business Centre, Monument Way, Ashford TN24 0HB