Section 21 ‘no-fault’ eviction ban: What you need to know
On 17 July 2024, the new Labour Government revealed it plans to give ‘greater rights and protections’ to tenants, by scrapping the Section 21 notice process.
With Parliament resuming after the summer recess, we take a look at Section 21 and what the Government’s plans mean for both landlord and tenant once Section 21 notices are consigned to history.
The so called no-fault eviction
To recap, section 21 Housing Act 1988 enables private landlords to repossess their properties from assured shorthold tenants without having to establish fault on the part of the tenant. This is why it is sometimes referred to as the ‘no-fault’ ground for eviction.
From the perspective of the tenant, it is often argued that they are left vulnerable to the whims of the landlord and the threat of losing their home through no fault of their own looms large.
From the House of Commons website, the following is noted:
“Private tenants, their representative bodies, and others working in the sector argue the ability of landlords to end an assured shorthold tenancy at short notice has a detrimental effect on tenants’ wellbeing.
Research shows evidence of tenants who are reluctant to exercise their rights to secure repairs and/or challenge rent increases due to the ease with which landlords can evict them. Respondents to a 2018 consultation on, overcoming the barriers to longer tenancies in the private rented sector, said they felt unable to plan due to housing insecurity, with knock-on effects on children’s education and residents’ mental health”.
Logically therefore, preventing the landlord from issuing such a notice will give the tenant more reassurance and rights in the property in which they live.
The end to no-fault evictions
The Labour Government intends finally to put an end to the Section 21 procedure. We say finally as this has been discussed for years and so has been a long time coming- an announcement about the abolition was first made back in 2019.
The impact for tenants is clear and will improve the situation for many people who have reported the types of problems we have noted above, but the impact on the position of private landlords for example is less clear, as is the impact on the private rental market. In theory at least, it is going to make it harder for landlords to remove a tenant from their own property and that risks becoming a deterrent to private landlords from allowing a tenant into a property in the first place. Whilst there are still provisions under section 8 Housing Act 1988 to enable an eviction, unlike section 21, only a handful of grounds are mandatory and they still require an element of “fault” on the part of the tenant. Other grounds are discretionary and still require “fault” which leaves it to the court to decide whether to order an eviction or not. The burden will be on the landlord to provide a ‘concrete and evidenced reason’ for eviction.
There must be an obvious concern that private landlords will withdraw from the market completely, whilst those that stay in it face not being able to evict a tenant even though the landlord wants the property back for themselves.
The competing interests of landlord v tenant are set to rumble on, but for now, it does look like the pendulum is moving in favour of the tenant.
Keelys LLP – Our Services
Here at Keelys we have a team of experienced litigation solicitors who are here to help provide you will all legal advice and support in relation to residential evictions – whether you are the landlord or the tenant.
In the short term, it is vital for landlords to take action in respect of any tenancies where they know they will require vacant possession within a definite timeframe. Time is not on the side of the Section 21 notice.
For further information and/or to discuss the position in further detail, please contact Patrick Farrington at pfarrington@keelys.co.uk or Ellysse Bassan at ebassan@keelys.co.uk