The Labour Government has consistently promised to ban Section 21 ‘no-fault’ evictions for new and existing tenancies. This is likely to cause upheaval in the private rental sector. If you’re a landlord or a tenant (or intending to be), you really need to read our latest update…
Setting the scene
In Labour’s 2024 election manifesto, they said Section 21 (s21) ‘no-fault’ evictions would be banned “immediately”. This hasn’t yet happened, but will do soon, perhaps in summer 2025.
S21 is part of the Housing Act 1988, and means (subject to certain conditions) landlords have the right to give tenants at least two months’ notice in writing, but they don’t have to give a reason. This can’t be done within a fixed-term tenancy unless there is a break clause or parties agree.
What’s changing
The new Renters’ Rights Bill replaces the Renters (Reform) Bill that was dropped before the election, but which also proposed getting rid of s21.
Key changes include:
- All tenancies will become periodic
- Assured shorthold tenancies will become periodic assured tenancies without s21
- Landlords will have to give four months’ notice instead of two, for specific grounds
- Landlords will be able to recover possession if they are selling up where applicable, but only after the first 12 months of tenancy (it used to be three)
When a tenant CAN be evicted
As with many legal matters, it’s complicated. But here are some of the main points to note:
Ground 8. If the tenant is in serious rent arrears…
The arrears must be over three months if paid monthly (previously two).
The notice period will be four weeks.
This makes a total of four months before the landlord can bring a notice of possession, and will make it even longer to evict non-paying tenants, especially if there are delays in the court process.
Exceptions…
Different rules apply for HMOs where all occupants are full-time students, agricultural workers, ministers of religion, supported living and social housing.
Concerns
Renters will get more security, and the confidence to report repairs without fear, but landlords are concerned they will be stuck with bad tenants.
To address this, the Government is supposedly expanding the Grounds for Possession under Section 8, and promising improvements to the County Court system.
Predictions
It’s easier for landlords to sell with vacant possession, to enable redecoration and viewings. So if more landlords decide to sell their buy-to-let properties before the changes, it will lead to more evictions.
After s21 is abolished, it will be harder for landlords to sell rental properties.
Landlords will want to reduce their risk and demand more evidence of affordability from proposed tenants.
They may wish to evict current problem tenants before s21 goes, such as those who are poor payers, or who don’t look after the property well, or who breach their tenancy agreement. They could do this under s8, but s21 is currently easier.
Where we’re at
The Renters’ Rights Bill has now completed its passage through the House of Commons. Next, the Bill goes through the House of Lords before it receives Royal Assent. It’s over 200 pages long, so will take a while.
When it comes into force, all tenancies will change that same day. It makes no difference how long you’ve been renting.
Meanwhile, landlords can still serve s21 notices provided they have complied with the current requirements.
What to do
If you’re a landlord or tenant and you’d like to know more, please contact us and speak to Charlotte, Lowri or Elly. Our expert team are here to help.