x
By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards

TODAY'S OTHER NEWS

End of Section 21 no reason to quit buy to let - Shamplina

Landlords should not be downbeat about the scrapping of Section 21 eviction powers as proposed in the rental reform White Paper.

That’s the view of landlord and eviction expert Paul Shamplina.

In future the White Paper says landlords will always need to provide a reason for ending a tenancy, such as wishing to sell the property or wanting to move back in.

Advertisement

Shamplina - founder of Landlord Action and Chief Commercial Officer for the Hamilton Fraser Group - says: “Whilst this will be unnerving for some landlords, the reality is that this has been a long-time coming and I believe those landlords who are committed to buy-to-let will remain. 

“The changes offer tenants greater security as part of a plan to create longer tenancies. However, implementing more mandatory grounds of possession under Section 8 should also strike a chord with tenants, demonstrating that rent arrears, criminal and anti-social behaviour will not be tolerated. 

“Previously, landlords have used Section 21 in these cases because trying to collate witness statements from co-tenants and neighbours has been challenging and often fruitless where the ground was discretionary. Knowing this procedure is mandatory will mean a judge has to grant possession as long as the requirements are met and evidence provided.”

Shamplina admits that it is disappointing that the notice period for the existing arrears eviction ground will be increased from two to four weeks under the White Paper recommendations.

But he adds: “I welcome the new mandatory ground for repeated serious arrears to prevent tenants paying off a small amount of arrears to stay below the eviction threshold. However, I believe falling into series arrears twice in three years should be sufficient enough for mandatory eviction rather than the proposed three cases.

“It is positive news that the changes have not been rushed in and the transition will be in two stages with at least six months' notice of the dates that they will take effect, and at least 12 months between the two dates. With concerns surrounding the cost of living, rising interest rates and impending changes to EPCs, I do think it is likely we will see an initial spike of landlords using Section 21 before the changes come in, of which the unintended consequence will be that perfectly good tenants will be evicted.

“35 per cent of Landlord Action’s instructions currently use Section 21 notices, so this is an indication of how much additional resource the court system will require, and a new robust system must be implemented to give landlords and agents the reassurance they need.

“However, much of what had been announced was expected.  It will take time for landlords to adapt and understand the new rules but as with everything, the market will adjust and find its new norm.”

You can see more about the White Paper here.

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

  • icon

    What about the switch to periodic only? No minimum tenancy length? What a joke.
    So, indefinite tenancies with no minimum fixed term? They'll switch off the student market.
    Social cleansing of students from residential areas into expensive purpose built student blocks. I can't vote Tory again.

    icon

    I agree that - student rentals in Nottingham are around £200 per week in these new blocks! Students will end up in even more debt (that they will never pay & the tax payer funds) and then move in to world of work with unrealistic expectations of rental housing.

     
    icon

    Scotland has had this since December 2017 and the student market is largely unaffected, although in theory one joint tenant can prevent their flatmates from ending the tenancy if they want to remain as there is no agreed end date.

    One benefit for students has been many landlords including me now prefer them to families who can't easily be evicted now.

    In Edinburgh and St Andrews etc., tourist cities, since landlords can't plan ahead and mix summer tourist rentals with winter student rentals, many now focus on holiday lets only thus reducing the availability of long term lets.

    In all, tenants are much more adversely affected than landlords due to the shortage of rental accommodation and a 30% increase in market rents from 2017 onwards.

     
    icon

    Hi Chris, how will the things you mention, switch off the student market?

    Thanks for the reply Doug.

    If I could ask a follow up question, is this just for England? or would this apply to Wales too?

     
    icon

    Ben. Technically, with the proposed ban on fixed term tenancies, you can't sign up a new tenancy on a fixed 10 or 11 or 12 month tenancy which is what most student ones are. So if a group say they are going to stay on at the last minute, you're in an awkward situation. Ditto as Robert points out, if an individual does. In practice this is unlikely (I've been doing it for 13 years now, mine are all 11 months, and they tend to start drifting off after 10 anyway). But there is a risk

     
    icon

    Ben, not sure about Wales. From what I can gather, they're as mad as the SNP - fortunately doesn't affect me. Re strategy going forward, I get on really well with all my tenants so I've had a bit of "here's a few beers, let's sit down and discuss a theoretical situation in, say a couple of years fine, where you're signing up to a new tenancy but without a fixed term". General consensus is that they would stick with the current 11 months anyway, maybe 10, and in a situation where 1 would mull staying on, peer pressure would disuade them quite quickly!

     
    icon

    I agree.

    Peer pressure in Scottish student lets tends to keep the annual pattern previously agreed to.

     
  • icon

    Section 21 was introduced so Landlords could be confident of getting their properties back. And was successful because it now houses almost 11 million people.
    It has been bought in in Scotland and the results are clear . Higher Rents and an exodus of Landlords. Why would it be different here.
    I agree there will be a spike in section 21 issued for the reasons Paul has given but another consequence may be Landlords having to move on less than perfect tenants.

  • icon

    The other issue is that the Government's rental reforms have moved everything so far to the left, that Labour's private rental sector proposals will be even further directed at taking the rights of landlords away. There could be an election before 2024, too.

  • icon

    Paul have you taken leave of your senses, don’t insult our intelligence it’s the very reason to throw in the towel. The very reason so many Landlords have been stressed out and sold up, you can’t make light of that rubbing salt into the wounds and tell us it will make it better.
    A long time coming you say and wasn’t 1988 Act a long time coming before when we fought for years for Assured Shorthold Tenancies because of the unfairness and the very reason its accurate to say there was no buy 2 let or any letting available at that time due to the fact if you let a property to anyone they immediately became a Sitting Tenants and the value of your property halved or disappeared for ever, this is exactly what you expect everyone to go back to.
    I know how it was and is, many of us spent our whole life to create or buy the property working 7 days a week making endless sacrifices, not taking breaks or going on holiday’s at home or abroad, creating the private rented sector that now houses 4.5m people from private funds and contributing billions of £’s to the economy. Roll on you now want to tell me a guy off the Streets have more rights to the property than the owner, he just walked-in took possession and occupancy’s of my property for ever, he probably spent half his life on Benefits and no commitment or contribution but now entitled to my property. So now I’ll need his permission which won’t be available to sell vacant possession, don’t give me all this rubbish about if I want to move in or a family member to do so, none of their business what I want to do with my property it not theirs, they didn’t buy it or anyone else make any financial commitment, so now they are going to call all the shots and dictate to me what I can and can’t do. What tree do you think we just fell out of !

    icon

    Very well said, Michael!

     
    icon

    The problem is that what Michael has said above has not been said on behalf of landlords during the previous consultation periods. There has only been acquiescence to the proposals of Shelter and Generation Rent etc by those supposedly representing landlords - and that has been worse than having no representation at all. We needed someone strong like Michael to put forward the reality of the situation.

     
    icon

    Selling up was a mandatory condition until Covid but now remains a discretionary ground along with all previous mandatory repossession grounds in Scotland.God knows if this will ever change back!

     
    icon

    That's a very big change in the rules, Robert.

     
    Fery  Lavassani

    Spot on Michael. Exactly for the reasons that you rightly stated, I am out. In my time as a landlord I have dealt with protected tenants. No thank you, never again.

     
    icon

    Fery, I have one protected tenancy which works well, but I did know that when I bought it for the right money, my tenant, a lovely little old lady 90 in a few months has lived there since 1958 and keeps the place well including the garden , I increase the rent every 2 yrs, I'm happy with the income, it works, but I can see situations where protected tenancies could be a nightmare

     
    icon

    Well said Michael... What planet do these idiots live on?!!

     
    icon

    Because evictions will become more convoluted, it will be good business for eviction specialists. Not surprised he’s in favour of this.

     
    Fery  Lavassani

    Andrew, protected tenancy is ok since you know what you are getting involved in. But when their off springs inherit the tenancy and then pass it on to the third generation (grand children) as assured tenant, its when the problem starts. You put the rent up to market rent, they won't pay, you serve them Section 8 notice (no Section 21 for Assured tenancies) then you go to court, then they falsely bring about disrepair ......You have been lucky Andrew. I had a case where four adults lived in a three bed house and their rent was £40.00 a week. Remember all maintenance and repairs were my responsibilities. No NO NO I will not get myself involved in protected tenancies no matter what the government calls them.

     
    icon

    I'm glad you lot are realising that charging extortionate amounts for basic human rights is starting to not look so good.

     
    icon

    James Turner - so when “us lot” get fed up with being a whipping boy for Shelter Generation Rent et al and sell up do explain to me where you think all the people displaced by those sales will live. Most will not pass mortgage affordability criteria and those Landlords who are tough enough to stick it out will have their pick of tenants and lack of supply will result in ever increasing rents - benefits tenants and those with pets will sit at the very bottom of a long long queue

    You really fail to understand that PRS in the main provides quality housing to people who need it.
    - I have lovely tenants and a good relationship with them all and due to my care and investment they have lovely well maintained modern houses as their homes

    The PRS however should not be confused with social housing and successive right and left wing governments have failed to invest in new social lets

    Demonising hard working and usually decent Lls is not the answer unless you really want millions of people to find themselves homeless

     
    icon

    Absolutely agree with you Catherine. I have just advertised a flat in Islington and already have had over 90 replies from people so keen to rent it. I have never seen such demand for that flat. I have taken the flat down now and I think I have found someone to move in immediately.

    To be honest it has been rather harrowing dealing with the requests from desperate people to rent the flat - finding somewhere to live has been made very difficult indeed for tenants as landlords have clearly already pulled out of the private rental sector. I don't like seeing people reduced to begging for accommodation. I just wish I had more accommodation I could offer in the short term. I don't think I will be continuing as a landlord in the long term because of the upcoming changes in the law.

     
    icon

    James Turner - being offensive does not help your cause - you seem quick to criticise those who put up their own money .
    , time and take the risk to build a business and provide housing which in my case ids far superior to anything offered by local social housing but I guess it will be a long wAit for you to answer the actual question - where do you think those people who in the real world and not la la socialism land will actually be able to put there heads down at night if Landlords leave?

     
    icon

    James ' a basic human right' where did you get that from? it's not my responsibility to provide for free a roof over the heads of the work shy scroungers of this country

     
    icon

    Catherine, I didn't get to read James Turner's offensive comment it's been taken down, when ignorant people such as Mr Turner find people disagreeing with them they resort to offensive comments, there has been others just like him on here , rise above them and ignore

     
    icon

    James, A landlord can charge whatever rent he wants. The renter can choose not to accept the rent and look elsewhere. I don't know your situation, but if you find a smaller place, cheaper location even just a room to rent, just to get you started. Then if you work hard, do overtime, maybe a second job and save hard, no holidays, no luxuries, whatever it takes, you might be able to save for a deposit and buy your own property. You could even start with one of those static homes. If you are motivated enough, you will find a way.

     
    icon

    John mate don't be silly, overtime, an extra job, work hard, go without is just so old hat today, we have the ''entitled'' generation, it is after all their human right to have, but not have to work for

     
    icon

    Yes Andrew, sorry, I was thinking if I was young and starting out.

     
    icon

    Brilliant reply. Screw this communist government, I'm out. The UK has become an utter disgrace of a political system. I've lived in dictatorships and there's far more freedom to do business. The UK is becoming truly communist, with a disgraceful government and an even worse opposition. They interfere in every aspect of our life and threaten jail, punishment etc for those not complying with their sh"t rules. How is this ''freedom''?

    UK politicians should stay the hell in the UK and stop preaching anything about ''freedom'' to the world. You want to impose this hell on the whole world? What incentive will anyone have to get out of bed unless you're a banker with links to the tories?

     
    icon

    Thanks for pointing that out James Turner. I can't wait for your next post condemning the banks for having the audacity to charge interest on your mortgage, for utility companies to charge you for electricity etc, for supermarkets to expect you to pay for food and for government taxes - all of which are counter to your basic human rights. Don't forget that, as a homeowner, you'll have to pay for and arrange all of your own repairs too - although the chances are you won't be able to afford those repairs, courtesy of all the aforementioned bills. Another human rights abuse. When I'm due in work on Monday I think I'll tell my manager that I expect to be paid but without doing the actual work anymore, because it's against my human rights to work 9-5.30 when I'd rather be gaming. Thanks for putting it into context for me.

     
  • icon

    Until we have full details of exactly what the mandatory grounds are and have seen in practice how long it takes to get a court hearing none of us know how downbeat we should be.

    If eviction under mandatory grounds is speedy and robust maybe things will be OK. Maybe tenants will prioritize paying their rent on time and not indulge in anti social behaviour. I guess the fear most of us have is that there will be insufficient court capacity and the waiting time to get a hearing date will be lengthy. A tenant will know that they will be homeless and probably have a CCJ so there is no point in paying any more rent. As they'll have stuffed their life up to that degree would having a criminal record do much more harm? If they decide it wouldn't what's to stop them stripping the house of anything they can sell or just trashing it?

    A tenant who is evicted under Section 21 has an expectation that the Council will ensure they have somewhere to live, even if it's only a hostel.
    A tenant who is evicted for breaching their tenancy under Section 8 has made themselves intentionally homeless. In reality where are they going to live after eviction? The answer to that question may well determine how downbeat we should be.

  • icon

    Micheal
    The PRS is heavily subsidised by the landlords labour, and the tenant know it and so do the politicians.

  • icon

    Totally agree with Michael- Also Paul mentions that for ASB all the judge will need is evidence !!! Let me just say I work in a job where trying to get people who have suffered ASB to give a statement is all but impossible…. So exactly how is this “ evidence “ to be evidenced? Without S21 all landlords will be on a tightrope, and only having the very best tenants will save you.

    icon

    ASB is a problem. I have an ex Council flat below one that is still owned by the Council. For the first 9 years my tenants lived there they suffered from the ASB of the upstairs neighbour. Within 2 months of moving in the Council tenant had been issued with a warning that she would be evicted if her behaviour didn't change. About 12 different neighbours had all reported the fighting and drug dealing to the Council over the space of one weekend. I casually mentioned to the Council a couple of years later that things were still bad and 2 days later my tenant had his car windows smashed. Nine years later she was rehoused by the Council because by that stage she had 3 children and the flat was deemed to be overcrowded. If Local Authorities can't deal with ASB effectively with their own tenants what hope have we got?

     
    icon

    Council and housing estates are the main problem areas for ASB, I have one house on a council estate where most are in private ownership and haven't had any problems, there are council estates in and around Norwich where I would even drive round, far less own anything

     
  • icon

    Simon
    Totally agree!
    Micheal,
    The social ie council, sector, is very heavily subsisided by the taxpayer. The PRS dosent that's where the big saving is for the taxpayer.

  • icon

    On reading the white paper it would seem that they want to water down sec 8 making it harder for us to get rid of none payers and taking longer

    icon

    Great references, well paid jobs, home owning guarantors only then. What a total s**tshow! It used to work so well before they got their sticky fingers all over the PRS

     
    icon

    There was a time Doug when I would have taken on a tenant on face value, those days are now long long gone, it would be finical suicide to do so now .

     
  • icon

    The 'writing has been on the wall' for sometime now. Yes we don't have a strong enough voice and yes these changes are not for our benefit. Corporations will come in and take a bigger slice of the rental market, we as private Landlords, well those that remain, will have to pick our tenants very very carefully.
    I will stay in the market but will sell until mortgage free as otherwise with increasing interest rates and higher costs due to the incessant tinkering of this government I could be exposed and suffer financial problems i would rather avoid.
    Like many here I do not understand the angle that the Government insist on taking to improve the situation. For a long time now we have seen knee jerk reactions to rogue Landlords. Most of us are not inclined this way and run our business in partnership with our tenants and no its not fifty-fifty but a partnership nonetheless. I believe in a survey most tenants reported that they have a good relationship with their Landlord.

    Good luck to all!

  • icon

    Basically the Conservative party is anti British and pro German!

  • George Dawes

    Politicians nowadays all have one thing in common

    Bought and paid for and against the interest of the workers

  • icon

    The laws in the UK are absolute nonsense. Good luck going down the section 8 rule with all these jealous socialists sitting in the council backing the criminals and thugs that destroy our properties and run off with the rent.

    You are no longer rewarded in the UK for investing, trying to get ahead. No you must be socialist hippy, just earn, pay tax or be a benefits scrounger. Good luck creating wealth for the country to pay for these parasites.

  • David Saunders

    Paul should try putting a bit more water with whatever it is he's drinking

  • icon

    I have 11 properties (one up for sale already) of which several do not have a 'C' level EPC. The tenants are all good and some are excellent. The houses are all well maintained.
    They are Victorian terraces which will be difficult to improve to 'C' without spending an awful lot of money which I really cannot afford - and causing much disruption to the tenants (in one property the elderly lady is very ill and not going to get better).
    If I can't afford to raise the houses to 'C' or above and have to sell, I wonder if that will be considered grounds for eviction. And if it isn't - what then?

    icon

    If you want to sell a property (for any reason) then that will be an acceptable reason for giving notice. They are not (at this stage) going to prevent people selling their properties. If they did try to stop properties being sold, then the BTL mortgage market would collapse as lenders obviously expect to repossess and sell the property if the mortgage is not being paid. So the only rental properties would be those with no mortgage.

     
icon

Please login to comment

MovePal MovePal MovePal
sign up