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Almost four in ten landlords will consider selling up if Section 21 is axed

Nearly four in ten private landlords will consider selling up if the government scraps Section 21, shocking new statistics reveal. 

According to a survey carried out by Landlord Action, 38% of buy-to-let landlords will consider offloading properties if the government axes Section 21 repossessions – so-called ‘no fault’ evictions. A further 33% said they would only continue being a landlord with significant changes to Section 8.

The study also found that 70% of landlords would be less willing to consider a longer-term tenancy if Section 21 was no longer available to them, while 85% said they would be more selective with their choice of tenant. 

“If this was the case [that Section 21 was scrapped], the government’s efforts could end up being counter-productive and harming the most vulnerable tenants” said Paul Shamplina, founder of Landlord Action.

Shamplina has written to the housing minister, Heather Wheeler, inviting her to gain a greater understanding of the possession process before making drastic reforms.

Encouraging longer tenancies will only be possible with major investment in housing courts to help speed up evictions, according to Shamplina.

He added: “It currently take 22.8 weeks from gaining possession to issuing a claim for eviction, and clarification regarding new grounds within Section 8 to protect landlords.

“It is clear from our survey that with so many other obstacles already faced by landlords, such as the introduction of more regulation, the reduction in the tax relief that landlords can claim on mortgage interest and a 3% stamp duty surcharge on buy-to-let properties, there is a real possibility of the buy-to-let market significantly shrinking over the next five years meaning higher rents for tenants.”

A separate survey by the Residential Landlord Association’s (RLA) which asks what a post-Section 21 private rented sector should look like has already attracted more a record number of landlords.

For further information, click here

Poll: Would you consider selling up if Section 21 is scrapped?

PLACE YOUR VOTE BELOW

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    Why do you describe this as 'shocking statistics'? The question was ' ...... will consider selling up', not '...... will sell up' - two very different things. Please do not over-dramatise. A survey conducted by 'Landlord Action' (who are 'Landlord Action'?) will hardly be objective and independent. Leave Gallup or another similar company to do your research.

    Paul Barrett

    What do you mean!?
    Who are Landlord Action!?
    Are you thick or something!?
    They happen to be probably the premier company that is responsible for carrying out more possessions than any other operation in the UK.
    How long have you been a LL and you have never heard of LL Action?
    I bet you have never heard of Landlordreferencingservices which lists good and bad tenants which EVERY LL could use to eradicate rogue tenants being taken on.
    You don't seem to be aware of those that are significant participants in the PRS industry.
    Heard about S24!!?

     
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    This article only scratches the service in reply to the continued and unfair lobbying the government gets from, Shelter, Generation rent etc. The whole attack on the sector has been based on unfair and the non-independent advice that the Government has received from such groups. It's about time the Government gets to hear the truth about what is happening in the PRS.

     
  • Paul Barrett

    Quint mate
    The Govt doesn't care about the correct things you suggest.
    Political expedience as they See it and ideology trump all commonsense.

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    This government is doing all it can to drive private LL out of business. The families will lose out as LL will sell properties and then they will be homeless and stuffed into a B&B as local authorities do not have enough houses to home them all.

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    The political chase for generation rent votes is about to back fire big time on tenants

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    I have already turned one family away as if there were issues I could no longer give them two months notice to leave at end of year. I have had to become far more picky about who I let to and I will no longer let to families with children because of new legislation about to be implemented. From now on professional couples only.

    Paul Barrett

    Just pragmatic BUSINESS sense.
    Nobody can blame you for behaving like this.
    Many more LL especially leveraged ones will be following your example

     
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    Agreed, we will have to be very careful who we rent to in future

     
  • Paul Barrett

    Being choosy over who we have as tenants is all very well.
    But what if the supply of quality tenants isn't there!?
    Do we LL take a massive gamble or what!?
    If you can't achieve very readily the quality tenants you want do you consider selling the property that cannot attract the 'right' tenants!?
    This issue will start to bear down on many LL.
    It is my contention that the majority of tenants are dysfunctional in some sort of way.
    Very few of them are capable of qualifying for RGI.
    So what then!?
    The risks for a LL are surely magnified as a consequence of all this further negative legislation soon to be visited on the PRS.
    Clearly the BUSINESS of being a LL is further complicated.
    Business decisions will need to be very carefully considered.
    I wonder as a tester to ascertain whether quality tenants are available would be to put out a spoof advert stating only tenants who produce a TRP that qualified them for RGI would be considered.
    I reckon the response would be minimal which would indicate how poor the quality of most tenants is.
    In light of this distinct possibility what would most LL do!?



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    No shortage of good tenants in my neck of the woods at present, however i do take your point as this may not always be the case.

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