The government’s proposal to scrap Section 21 of the 1988 Housing Act is likely to deter many people from investing in the buy-to-let sector and encourage existing landlords to exit the market, thus adding to the housing shortage crisis, according to Just Landlords.
The landlord insurance provider fears that the government’s plans to abolish Section 21 in a bid to end so-called ‘no-fault’ evictions will have a major impact on the market.
Removing the ability to evict with Section 21 will undoubtedly concern many buy-to-let investors, especially smaller landlords, which could result in a rise in evictions in the short-term, as landlords look to exit the market.
Rose Jinks, spokesperson for Just Landlords, said: “If the government does decide to scrap Section 21 completely, then landlords will need support on how to regain possession of their properties in legitimate circumstances, such as when they need to sell.”
“We are concerned that this latest change to legislation could further deter landlords from investing in the private rental sector, as we have seen recently, which could dampen housing supply and make it more difficult for tenants to find homes.
“What we’re most concerned about is how this will negatively affect tenants in the long-term. We fully support the Government’s aim of improving tenants’ rights, but the effects need to be considered before any changes are implemented.”