The government has pledged that section 21 repossessions will not be scrapped until improvements have been made to the way courts handle legitimate possession cases.
At present it takes an average of over half a year for the courts to process possession claims where landlords have good cause, such as tenant rent arrears or anti-social behaviour.
Responding to a report from the House of Commons Housing Select Committee ahead of MPs debating the Renters Reform Bill on Monday, the government has confirmed that implementation of the new system for repossessing properties “will not take place until we judge sufficient progress has been made to improve the courts.”
It continues: “That means we will not proceed with the abolition of section 21, until reforms to the justice system are in place.”
Alongside this, the government has agreed to establish a new ground to repossess properties to protect the yearly nature of the student housing market.
The government has said it will “introduce a ground for possession that will facilitate the yearly cycle of short-term student tenancies” which “will enable new students to sign up to a property in advance, safe in the knowledge they will have somewhere to live the next year.”
This news - reported by the landlord body the NRLA - appears to be a major concession at the end of the final working day before the Second Reading of the Renters Reform Bill.
Ben Beadle, chief executive of the National Residential Landlords Association, says: “Reform of the rental market will only work if it has the confidence of responsible landlords every bit as much as tenants. This is especially important given the rental housing supply crisis renters now face.
“Following extensive campaigning by the NRLA, we welcome the approach taken by ministers to ensure court improvements are made before section 21 ends.
“The government is also right to protect the student housing market. However, more is needed to ensure student landlords are treated the same as providers of purpose-built student accommodation.
“We will continue to engage positively with all parties as the Bill progresses through Parliament.”
The National Residential Landlords Association has long argued that without quicker court processes, responsible landlords would simply leave the market following the abolition of section 21, at a time when renters are already struggling to find a place to live.
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A little Common Sense at last. Now they need to stop the boats.
Mike, I’m not sure why you are so concerned about a handful of unfortunate people risking their life in those boats. There were 3,057,654 visas granted in the year ending March 2023, 90% higher (1,449,071)than the year ending March 2022 as per gov.uk.
No wonder why there are so many people applying for every advertised property.
It’s still worth it to be a landlord for the foreseeable future even if the BTR continue to expand rapidly.
@ Nikie Davies
A handful? Ddid you go to the same maths teacher as Diane Abbott?
Annoyed landlord: read between the lines- most of those 3 million are permanent residents not visitors and not Europeans. This year they will be bringing the family over.Plenty of tenants to choose from . The accommodations for the boat people is government responsibility not PRS.
Astonishing but I think there will be huge backlash from the ignorant and publicity seeking charities like Shelter!
It's rare the government are swayed by sense and not driven by political perceptions based on promises made. Maybe in this case the government actually considered the court systems completely inability to deal with the anticipated deluge of court cases banning S21 would bring and the obvious embarrassment the government would have then faced... maybe.
Either way this is good news for both tenants and landlords!
EDIT FOR DAVID EDMUNDS
How is it good news for renters? Well, if you're a renter and behind in rent, a S8 will drastically affect your credit rating and prevent you from renting any decent privately rented home (because good landlords won't take on people with a record of bad history). An S21 means there's no affect on credit history! Which would you prefer, mate?
It's the huge cost of housing the homeless that's led to a temporary outbreak of common sense. Nothing more.
Please don't credit any politicians with having common sense or listening skills.
How is it good news for renters, we want homes not assets, who would want to rent knowing you can be booted out any time, model renter or not
@ David Edmunds, Then buy your own property. Tenants get at least two months notice, often more. If you sit tight then it will take six months or more for you to be evicted by bailiffs. Take note that bailiffs evict, landlords simply give notice that the contract is ending. Hardly being booted out. I have used Section 21 twice in twenty years. Once because of ASB and the second because the mortgage term had run its course. The tenants had four months warning before they received a S21. I suppose that the mortgage company booted them out too?
David - When you rent it is under the understanding that you are not being given the property, you cannot live there forever. Renting should be seen as a temporary arrangement (even though some people rent for many years). If you want full control and live there permanently then you should buy a property.
Providing permanent housing for tenants is the job of the state, not private individuals.
This is indeed good news, but why on earth was this not done before so many landlords sold up? What a mess, but let’s hope this is some sense appearing in the system.
Waiting for the incoming from Polly,
Has anyone seen the steam coming out of Polly Bleat's ears yet?
No spout, Polly and Kettle remember
I'll give NRLA credit for getting this through.
Great four o'clock drop to ruin the weekend for Shelter, GR and Acorn.
NRLA were focussed on the boss's student rentals. The rest is a temporary reprieve to distract us.
No improvements will be made otherwise they wouldn’t be changing it.
End of Contract is a legitimate reason and should be automatic, (not forced to sell to get it back are you complete clowns or what do you take us full) if either Party is not willing to sign another Contact that’s it end off.
It’s a Business not a gift or a charity. Charities do supply any housing only mock those who do.
When I pay you rent where is the charity
When YOU pay the rent David or would that really be the tax payer paying it for you through UC?
Does David expect charity from Tesco? Obviously does not understand how business works.
Fantastic news! Maybe??? I think they are just trying to halt the mass sell off that is taking place now and will continue through next year pushing homeless figures through the roof, just before the election. Clever really, they are offering this carrot so we don't sell....then When labour get in we won't be able to sell!!! It might mean something if they were going to be in power for another term. Too late for my tenants unfortunately......at least it gives us a little longer to complete the big sell off!
I would like to think that at last that the Tory Government have started to see things the way that Landlords do? However could it just be a ploy to slow down the exit of PRLs from the industry?
And what happens if Labour take control at the next election, be warned and look to Wales and Scotland where those Governments there are already well ahead of England with their outlandish onslaught against PRLs and holiday lets. If you were thinking of jumping ship and are now changing your mind I suggest you look at draconian rules already in place in those Countries.
I moved totally to student rentals with multiple solvent middle class guarantors and pity help decent Scottish families whom I used to welcome - but only on my own terms, not those dictated by the SNP and their little Green helpers.
Well, I agree common sense prevails... to avoid a mass exodus of landlords and giving students and universities what they require to function properly.
Gormless Gove running scared after yesterday's by-elections but too little too late because the stream of Section 21s being issued has now turned into a fast flowing river and worse too come now Labour government on horizon.
Clog up the courts more and more. Section 21 stays🙂.
Now Rishi, if you're really serious about protecting the PRS, deal with Section 24 and bring back indexation relief for CGT.
I still believe Comrade Starmer can be defeated but it needs a swift return to real Conservative values and dealing properly with the workshy chancers.
No chance, Labour will be in, though i would love to be proved wrong.
And yes Mr Sunak, deal with S24
Rob, what are the "conservative values"? When Mrs. Thatcher left No. 10, so called "Conservative Values" ended there and then. Since then, we have had a lot of monkeys running and leading this party. Lairs and self centred running the party since. Example "Brexit, Brexit".
Changes, not just delay, still required to RRB proposals for S21.
Like keeping S21 for certain cases at least (where there is a clear reason for serving, some which may not actually be the tenant' s fault e.g. tenant going senile and a threat to themself and adjacent properties).
I don't trust the 'pledge' not to bring in implementation of a part of the RRB when it becomes an Act (a not uncommon situation with parts of Acts)
What a politician views as improvements to the courts, and what we would see as an acceptable improvement, are two completely different things.
If a different party gets in after the election, they can say it wasn't their pledge and everything has changed; and so implement.
One hope then is if Labour (and possibly others) implement parts of the Act that the Tories don't, the amount they'll want to do on a range of matters, and the usual limits on parliamentary time (which is why S21 abolition has taken so long since first promised), may mean they don't get to brining forward even more draconian measures quickly.
And by then the effects of LLDs selling should be even more apparent: after perhaps another year of rentals sales before the election..
Those are good points, Henry
The idea that you can only have fixed term tenancies for students is bizarre. There are obviously other tenancy types where fixed terms are appropriate for example where the tenant is visiting the country to work here as an academic or surgeon for a fixed number of months.
Incidentally Gove said that Section 21 would not be abolished until the courts were reformed days ago - this is not new news.
NLRA does not represent the PRS. I repeat it does Not represent PRS. It is merely a resource and does that very well. However has NLRA ever legally challenged any of the policies that have put this deathloop on PRS in motion that is now a stranglehold!
It is about time PRS gets behind a more clued up advocate that is not scared to say yes there are few rogue landlords same as there are rogue policeman, politicians, lawyers etc but rest of us do provide an important quality housing provision.
We have yet to close down parliament because of an mp scandal so why deem it necessary to disband PRS landlords and treat entire sector like human traffickers?
Building 500,000 new homes a year is a total red herring as they are not going to be all social housing or affordable homes unless the council do it themselves from their magic money tree. Can councils sustain social housing on their current budgets (no!) and is it really fair that someone who gets social housing then goes on to earn £40k per year keep their council/social housing ( I can name a few Labour MPs ).
The whole concept of housing provision is a mess. Build to rent cannot replace our victorian housing stock nor can council ever maintain them.
But most importantly the PRS must represent its values through an organisation that understands it. That's certainly not NLRA.
Section 21 issue is just sticky plaster on what is a boil about to explode.
Maybe scrap the Court and do something useful in Parliament instead of removing Section 21 or why was it ever a requirement for only one party to the Contract to have to do this. I see our CEO is now getting the concession he wants the Student landlord but of Course it will suit the Big Boys in turn as well for example the 600 multi storey Porto cabins Student Flats in the middle of the Gyratrory adjacent to Hanger Lane, Tube Station, loads of others. I don’t see anything improving this is just a calm before the storm, they are not ready yet with the Big Construction Projects but we’ll on the way a couple of years should do the trick.
So they are to hold back until things improve, no hope of that they have loads more rubbish in the pipe line for us. They want a couple of million of us to be Accredited more rules more cost more administration time wasting, even some Councils using this scam already if you are not Accredited you can only get HMO License for one year instead or five. At one time you could get a Discount for being a member of a landlord Association, now you might get a discount if you are Accredited. Then we have Ombudsman coming what for to damage the landlord, a bit like that place in Alfred Pluce I don’t expect any justice there. Oh yes we must join a Re-Dress Scheme another admin scam ? we are only the ones with something to loose but don’t worry about anyone redress us, just where do all you lame ducks get off, go and get a life.
Robert lucky you are ahead of the game with Student Letting’s.
You’ll be able to have your fixed Term Contracts as now also for Ben our CEO and Student landlord. He fought for Students exemption for his own Benefit but that’s not the reason why he got it, it’s very convenient and exactly what the Big Boys want who are taking over the Student Market in a Town near you, (not to house the homeless) with their Multi Storey Flats near Train & Tube Stations. They are not Building Houses for Families with gardens, not interested in that has to be Multiple Boxes stacked on top of each other, ding dong repetition max profit and your 2 sq M platform in the Sky nice garden isn’t it.
They won’t be housing the less well off or the homeless either they can whistle for it. Top Rents only Please as now only Traditional landlords has ever offered affordable Rents so they are not standing for that, must make us unaffordable and very successful at that with a Mammoth of Regulations, 🦣.
We have this in Norwich old 60s office blocks extended into the sky and converted into student rooms with sky high rents, no homes for normal people or families
So let me see now what they mean getting rid of Section 21 for landlords who offer Affordable Rents and proper Houses for the less off nice one,
Do we have Discrimination Laws ?. So Mr Michael Gove who wrote this nonsense Bill as a junior Minister as I understand it caused all this mayhem, sell off, homelessness and economic disaster and he still on the payroll.
Lets not forget the Government has recently allowed Legal Aid to Tenants from Day one in an attempt to slow down the whole process and increase costs for Landlords.
There should not be any defence for Section 8.
If section 8 was quicker it would reduce the number of evictions . Because paying the rent would be a priority.
It's almost as if they want to destroy the PRS and lose the election.
Dont all get too excited, we may have a GE as soon as May if rates start dropping, if not November. This will only stick if Mr Sunak wins, otherwise it will go in the bin instantly, and will likely provoke its removal rather quickly under a Labour government. The good news though is at least it hsa delayed ite removal by at least 6 months more likely 12, by which time the next CGT stats will be out and that could be enough to give any government the willies about reducing supply further. That is assuming they do understand that the RRF will reduce supply. Im not sure many politicians understand still.
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