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.”
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So the abolition of S21 is going to lead to a swathe of evictions. You have been warned!
It would also bring rents down, consider 1m+ rented properties becoming available in a short space of time. Musical chairs as everyone swaps property for a lower rent.
It is already happening in Wales. From December landlords are obliged to change out tenancy agreements for contracts by dopey Drakefords Rent Smart Wales licencing organisation which all landlords have to subscribe to. (licence). No S21 and 6 months notice to tenants for very limited eviction reasons. Selling mine as fast as CGT allows. I was selling as they became vacant, now I am issuing S21 notices while I still can. So far I will only have 2 left in the net after December. It is such a shame for my tenants who have done nothing wrong but I want to retain control of my properties, not hand it over to some left wing organisation who tell me what I can or cannot do with my property. They already did that once during covid, when the government basically appropriated our properties by banning evictions for any reason without compensation, to prevent a homelessness crisis.
Me to
I think no fault will remain for Wales?
from .gov website gov.wales/renting-homes-frequently-asked-questions-landlords#section-92277
"Will I still be able to regain possession without having to cite a fault on the part of the tenant (currently done using a ‘section 21 notice’)?
You will still be able to issue a ‘no-fault’ notice to end a periodic standard contract – this is called a Landlord’s Notice – under section 173 of the new law. Section 173 enables a landlord to regain possession without having to give a reason for doing so.
For contracts signed before 1st December, and which are periodic tenancies that convert to periodic standard contracts on that date, a two-month no-fault notice period will apply after 1st December.
For fixed term tenancies that convert to a fixed term standard contract on 1st December and subsequently become periodic (if the landlord doesn’t seek possession at the end of the fixed term by issuing a two-month no-fault notice), a six-month notice will apply to the substitute periodic contract that follows the fixed term.
The six-month notice period applies only to occupation contracts which begin on or after 1 December 2022."
So it appears that section 173 is no fault.
"You will still be able to issue a ‘no-fault’ notice to end a periodic standard contract – this is called a Landlord’s Notice – under section 173 of the new law. Section 173 enables a landlord to regain possession without having to give a reason for doing so."
Its just now 6 months notice rather than 2
The big fear with what is to come is our lack of control over OUR property, they make something currently mandatory to something that an “ opinion “ is given, and we have two outcomes 🙄 . The situation during Covid is a worrying insight into what this government can do, and it is scary…. So we sell. They reap what they sow.
The White Paper in England doesn't acknowledge that the landlords own the properties. Landlords are simply people who are required to have a raft of responsibilities, but no rights of control at all.
Obviously nobody in their right mind would carry on letting in those circumstances. It has just become a question of when is the best time to leave the private rental sector before your property loses a big percentage of its value.
Well said, Ellie.
Another astute comment from Ellie Edwards, why don't you send your comments to Liz Truss. She claims to be into hardwork and enterprise !
Thank you Edwin.
I don't know whether Liz Truss is listening to landlords. The previous cabinet members associated with the private rental sector certainly weren't. The white paper could have been drafted by Generation Rent or Shelter.
I think it’s the intended consequences of removing Section 21. There’s a big difference between not needing to use it because it’s there and the Tenant knows its there and must behave and pay as well, so they know the consequences if they don’t.
I seen guys from the Department spouting this nonsense years ago, about getting rid of S 21 and saying exactly what’s in the WHITE PAPER now so it deliberate and not any unintended consequence just add Mr Gove. Scrap this madness now you have already seen the consequences thousands of LL’s selling up, Making Rents unaffordable, cost of living Sky rocketing, strikes all over the place, now looking for £15. ph minimum wage, thousands of Businesses closing, so they think the remaining Businesses can pay £15 ph they’l be all closed at this rate. This rat race would never have started if they hadn’t continuously attached PHS you reap what you sow. Scrap WHITE PAPER now and reinstate S.21 or enjoy the total collapse. Those Policy’s are Treasonable and totally against the National interest. Incidentally there’s a War on as well if they didn’t notice.
Nail on the head.
Ellie Edwards
A bit of cut and paste, you have your letter. Point out that the banks are ramping their property investments, ie matchboxes in the sky, and it is likely to lead to another sub prime type banking crisis. Ask for comments, at least it's brought it to her attention!
Jacob Rees-Mogg may become the Secretary of State for Levelling Up, Housing and Communities, so perhaps he is the person to whom landlords should be writing. Possibly a bit premature because we don't know yet for sure that Liz Truss will win the leadership contest - although that looks very likely.
For rent arrears step one of a Section 21 can be very helpful for a tenant. It's only steps 2 and 3 that require them to move.
On several occasions I've issued a Section 21 notice to enable a tenant to get a breathing space from other creditors and get his rent payments back on track. The further down the payment priority list a creditor is the louder they are. Tenants have a tendency to pay whoever is hassling them the most. Just having the initial Section 21 notice can be enough to make them focus on their spending choices and have serious conversations with other creditors. No one wants to be chasing a homeless person for payment.
It also gives us the ability to move on to step 2 if there is no sign of improvement. That's our choice though. Rent arrears can occur for numerous reasons such as job loss, problems with UC, illness and no entitlement to sick pay, etc. People have often signed up for memberships, subscriptions and contracts that they can normally easily afford but are very hard to escape from mid contract. Sight of a Section 21 notice can get some of these contracts paused or cancelled and it can also help to get a Discretionary Housing payment in some circumstances.
Yes Jo, a shot across the bows often works wonders, focus's the mind .
Section 21 was abused by Tenants sometimes creating a situation where it would have be served, other times demanding it and sometimes in collusion or LL won’t be getting rent. Then get an eviction Order and off to Civic Centre to get guaranteed housing, thousands done this but never mentioned on here, this is the real reason why Government is scrapping Section 21, just blame the landlords instead. I didn’t see any percentages in your Article to take this into account, the truth would never do, don’t suit their agenda.
I have already issued by S21 since the Renter’s Reform White Paper. I only got to literally page 40/80 ish. I only got that far for my own amusement enjoying the sheer comedy horror of what I read. As said above it could have been written by Shelter of Generation Rant. Shocking. No common sense.
I am evicting now because my tenants are a PITA. The woman anyway. They come from an undesirable background without being more specific. I didn’t want them at all, but I took them on and gave them a chance to live somewhere. In return I get:
Thousand of pounds of mould remediation works and a no win no fee solicitor letter I have to defend.
They lied about being professionals and live on UC. So I can’t put the rent up. She pays the rent when ever she fees like it. Recently more later due to the cost of living crisis.
She constantly demands upgrades such as a new front door and window, insultation, redecoration, new flooring. Not offered to pay for it, or more rent…
She has harassed me on a few occasions in the last year endlessly bombarding me with Whatsapp messages complaining about risking lives due to her mould creation and other crap. I can't even 'fight back' and put her in her place as it's in writing. The tenants can do what they like. Landlords are held accountable.
I’m getting rid of this **** now before the government prevent me from doing so. With all the anti-landlord rhetoric, S24 and all the licensing, EICRs, Dereg Act, the governments treatments of LLs through Covid and the White paper I feel genuinely scared being a landlord. That the govt can just ban things as they want and not offer to pay where the tenants do not.
It’s MY PROPERTY. IT IS NOT the tenants or the government’s, Shelter’s of Generation Rant’s. I CONTROL IT. I’m not having my property appropriated by the Govt so that between them and the tenants they both control it. I OWN IT WITH MY MONEY. I SAY WHO LIVES THERE AND WHO DOES NOT. WITH OR WITHOUT PETS ETC. No? Ok I’ll sell and put them all in B&Bs and hotels.
The Tories chose to make council’s sell of all their council housing. That’s the government's problem not mine. Meanwhile they allow people on over £100k a year to live in council houses (Bob Crow and that Eddie Demsey both of the RMT).
My tenants are foreign (a poor country). They have come to this country to live on the benefits system. They displace our own people and other good hard working people from other countries. They let them all in no problem everyday. They restrict the building of new homes strangling supply and willfully increase demand. The housing crisis is mainly of the government’s own making. I’m not going through the White Paper reforms with my tenant refurbishing with her insitu. Builders don’t like going there. Some refuse to return.
Tenants seemingly are entitled to everything and responsible for nothing.
I think I may move abroad to escape. I think the lefties are taking over. Strangely I don’t fear Labour getting in as I don’t think they could be worse than the Tories! But that’s perhaps not true. I do fear for our country though. I don’t think we are going in a positive direction in recent years.
Thank god that rat Gove has gone along with the Liar and his own ‘levelling-up’ populist self-serving policies.
Seriously need shot of Eddie Hughes now. He is the one constant behind this white paper - more in hope than belief - perhaps with him out there would be less momentum re White paper?
I hope Catherine. Dreadful people in govt atm!
If the Govt had slightest interest in Why Section 21 notices were being served, they could include an optional ( - for statistical use only, not featuring as part of the case ) section on the form as to why it was being served, or include it on the N5b court claim form, if it might aggravate an existing ASB tenant situation.
Mathew, my friend I think it’s called a Collapse and even it the Tenants can get lower rent, their secure jobs and income will be diminished, everyone worse off.
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