Labour pledged in their election manifesto to scrap Section 21 ‘immediately’. Now, back in the House of Commons for the second time this year, could this be the official start of the end of no-fault evictions?
Following the Conservative government’s unsuccessful attempt at passing the Renters’ Reform Bill due to the election, Section 21 is back in the House of Commons for the second time this year.
Labour’s Renters’ Rights Bill was introduced to the Commons this week for its first reading. The draft law intends to provide more protections for tenants, with abolishing Section 21 Labour's primary target.
The Bill, which was mentioned in the King’s Speech, includes a range of other measures, from allowing tenants to request to keep pets (which landlords will be unable to ‘unreasonably’ refuse) to implementing Awaab’s Law and effectively passing on all responsibility to landlords when it comes to mould in properties. You can read our full analysis of all the measures in the Renters’ Rights Bill here.
What does this mean for evictions?
Michael Gove had proposed delaying the abolishment of Section 21 until sufficient reviews and improvements to the court system had taken place. This would have ensured the justice system was ready and able to handle the inevitable rise in Section 8 notices and court-based disputes between tenants and landlords.
Unfortunately, under Labour’s plans, the Section 21 ban will commence as soon as the Bill becomes law.
The consequences of scrapping Section 21
The main concerns for industry experts and landlords alike are the unintended consequences that will inevitably come with scrapping Section 21,
Landlords will be forced to vet prospective tenants more rigorously to avoid the risk of facing a lengthy and expensive eviction process. This means tenants on lower incomes, with pets, and those with previous Section 8 notices will struggle to find safe and secure homes to rent.
Furthermore, while landlords won’t be able to advertise as ‘no pets’ and ‘no tenants on benefits’, nothing will be in place to prevent landlords from being selective here. Landlords have the right and need to protect their investment properties, and removing Section 21 here will force them to be more vigilant.
Most concerning is that a Section 8 notice renders tenants ‘intentionally homeless’ in the eyes of the council. This means the most vulnerable tenants may not be offered long-term council housing.
You can read our full article on the consequences here or watch Jeni Browne’s key takeaways on our YouTube channel.
What’s next?
What the sector really needs from the Labour government is a realistic and effective alternative method for landlords to repossess their properties. As it stands, there’s no clarity on whether the grounds for serving Section 8 notices will be extended to include more than just missed rent payments or anti-social behaviour.
Until then, it remains a significant threat to landlords. The sector had hoped this government would work more closely with property investors and industry professionals than their predecessors to introduce solutions that support both tenants and the landlords these renters rely so dependently on.
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