Proposed Government changes to ban “no-fault evictions” aren’t the silver bullet Ministers hope they will be, according to a leading property association.
The Government looks set to fast-track legislation to ban so-called ‘no-fault evictions’, Section 21’s – enacting legislation that was first suggested by the previous Government in early 2023.
But the National Association of Property Buyers say the new policy is unlikely to make life better for tenants.
Commenting on behalf of the NAPB, Jonathan Rolande said:
“There is no doubt that some renters live in fear of a Section 21 arriving one morning giving them two months’ notice to leave. But anyone hoping for a silver bullet to solve housing issues is in for disappointment.
“Firstly, the Section 21 could only have been used to end a tenancy after a fixed period. In other words, two month notice could only be given on Month 10 to end a 12 month agreement. Uncertainty comes for tenants on a periodic ‘rolling’ tenancy where the notice could have arrived at any time. But it is a two way street. Tenants also had flexibility in a periodic tenancy, not being tied into a six or twelve month agreement.
“I’d ask how many landlords used Section 21 to evict good tenants when they are not selling the property? I’m not sure anyone has the data but I suspect the number is low. Why would they? Yes, if they are selling the property it is likely to be more valuable and easier to sell vacant but under the new regs, they will still be able to use a Section 8 to get it empty and sold.
Ditto bad payers and anti-social tenants.
“So this is unlikely to prevent many evictions. Add in the fact that more former rental homes are on the market – 18% of all available stock used to be rented versus 8% in 2010 – and we can deduce that many landlords are leaving the sector.
“My guess is that a high proportion are doing so to beat the legislation. That’s good news for buyers – because we will see more available homes. But it is very bad for renters who will struggle to find a home at all, and what is available is at near all-time high rent.
“Increasing rents beyond market value looks set to be outlawed too. Whilst there were already rules around this – tenants had a right of arbitration – very few used it and faced with an increase decided to either pay it or leave. There will be issues around proving one way or another what is fair, especially in a market where seemingly, the sky’s the limit.
‘In-tenancy’ rent increases written into agreements could be banned. These were not standard in most cases and of course when used, at least gave some certainty to tenants as opposed to an unknown increase at an unknown date in the future. I do not see that the ban will affect many people due to the lack of common use.”