A new survey reveals precisely why the controversial Section 21 notice is served by landlords on tenants.
In a study by industry law service Landlord Action, some 34 per cent of landlords said they had served an S21.
Amongst those, the most common reasons given were rent arrears (31 per cent), landlords selling their property (26 per cent) and anti-social behaviour (22 per cent). Just two per cent said it was in order to move back in.
Landlords were also asked whether they planned to issue a Section 21 notice of eviction to their tenants in the next 12 to 18 months – critically, before the Renters Reform Bill comes into force preventing landlords from using Section 21. In response 28 per cent of landlords said yes and a further 28 per cent stated they were not yet sure.
The vast majority – 42 per cent – said that if they doing serve an S21 it would be because of concerns that they will be unable to gain possession easily in the future, and 24 per cent attributed their decision to increasing legislation obliging them to sell up.
Just 10 per cent of landlords said that it was because their tenants are already in rent arrears.
Paul Shamplina, founder of Landlord Action and chief commercial officer for the Hamilton Fraser Group, says: “The response paints a very clear picture of the unintended consequences of abolishing Section 21. More than a quarter of tenants who have or will be asked to leave their rental properties (via receipt of a Section 21 notice), are in such a position not because they have done anything wrong but because landlords fear they will be unable to gain possession of their property easily in the future, if their circumstances change.
“Competition for rental properties is already at an all-time high, and we could be heading towards a rental stock crisis. It has been reported that in some parts of London, for example, tenants are offering up to a year’s rent in advance. But for most, this simply isn’t feasible.
“Whilst we don’t know how many of the properties sold will remain in the buy to let sector, it’s clear that tenants will ultimately suffer as the combination of pressures forces rents to continue to rise.
“Landlords need reassurance and clarity on the future of evictions soon if the sector is to avoid a deluge of evictions and homelessness.”
