Proposed Abolishment of Section 21 notices – What should landlords and tenants expect?

The Renter’s Reform Bill was first proposed in April 2019 by the Government to improve protection for private renters in England including the ending of section 21 notices, commonly called no-fault evictions.

The section 21 notice can be issued by private landlords without any requirement to give a reason. Critics say this is a cause of homelessness and means tenants never have a chance to settle in their homes due to the fear of eviction. Examples where landlords may issue a section 21 notice include anti-social behaviour, the need to reclaim the property from a tenant who is damaging it, getting property back to sell it, or if the landlord and the tenant have fallen out.

In February 2022 the Government published a white paper called ‘Levelling Up’ the United Kingdom which repeated the plan to remove section 21 notices. Other changes include The National Register for Landlords and taking tough action against rogue landlords. A further white paper will be published in spring 2022. Currently little detail is known about how the removal of section 21 notices will happen or the timeframe. The Levelling Up white paper says ‘by 2030 renters will have a secure path to ownership’.

However, their withdrawal will impact on how the product operates and the claims exposure as this legal development is likely to significantly change the way the private rented sector works.

But how and what will change is currently unknown and depends on various factors.

Thomas Pertaia, a solicitor at DAS Law provides you with all the details you need to know about the Renter’s Reform Bill…

What are the new rules and when will they be introduced?

February 2022 the government launched levelling up white paper, a policy document that sets out plans to reform private rented sector. Some of the proposed changes include;

• the abolishment of section 21 “no fault evictions”
• proposals for new minimum standards for rented homes
• introduction of National Landlord Register and taking tougher action against rogue landlords

Full details of the above proposed changes and the implementation dates are not yet known.

Abolishment of section 21 notices is likely to mean more landlords will rely on the section 8 notice procedure. What will section 8 notice look like under the new rules?

Whilst the exact structure of s8 notice is not finalised three new grounds were suggested to be included;

• Repossession of the property where the landlord needs it for occupation by a family member
• Repossession of the property where the landlord intends to sell it
• Repossession of the property where a tenant is preventing the landlord from maintaining legal safety standards

We await further details of what new s8 notice will look like.

There is already more scope for litigation under the section 8 notice* procedure. It can be a longer, more drawn-out process for landlords than using section 21 notices. Will the new changes lead to more litigation?

Under the current structure landlord are able to seek possession of the property without needing to show any reason. The abolishment of s21 will put an end to “no fault evictions”. It is unlikely that we will see an increase in possession claims, however due to the nature of the change and the need for reason it is likely that there would be an increase in defended possession proceedings.

Will there be changes to the court system to improve efficiency e.g. a specialist housing court with expert judges and trained court staff. Or will the changes cause case delays?

The exact structure is yet to be announced but it would not be unreasonable to expect some changes to be made to the court system. It must be noted that in response to the government’s plans to abolish s21 notices the Residential Landlords Association (now the NRLA) has suggested a reformed and improved court system should be introduced citing Scotland as a precedent.

Disclaimer: This information is for general guidance regarding rights and responsibilities and is not formal legal advice as no lawyer-client relationship has been created.