The Government has confirmed the end of Section 21 no-fault eviction notices as part of its newly published Renters’ Rights Bill but questions are already being raised about whether courts can cope.
The previous Government had delayed banning Section 21 notices until courts could cope with an expected increase in demand from landlords seeking other routes to get their properties back and legitimately evict tenants when required.
But there doesn’t seem to be the same approach under Labour.
While abolishing no-fault evictions, the Bill also increases the mandatory threshold for eviction from two to three months’ arrears and increases the notice period from two weeks to four.
The bill includes strengthened rights to reclaim properties when it’s necessary, for example to sell or move in.
Tenants will benefit from a 12-month protected period at the beginning of a tenancy, during which landlords cannot evict them to move in or sell the property. Landlords will need to provide four months’ notice when using these grounds, giving tenants more time to find a new home, and reducing the risk of homelessness.
The Renters’ Rights Bill will also remove fixed-term assured tenancies and tenants will instead be able to end the tenancy by giving two months’ notice.
Sarah Taylor, a property dispute resolution partner with Excello Law, said: “This ban on no fault evictions is good news for tenants and should protect them from unscrupulous landlords who decide to serve notice on the tenant with no good reason. The proposed legislation should not adversely affect good landlords who are fair and reasonable when considering when to obtain possession of their properties.
“The risk to both tenants and landlords is the existing backlogs in the Court system. Trying to obtain possession orders will be protracted, causing uncertainty and delays for both landlords and tenants.
“There is a risk that landlords who are unhappy with the proposed changes, may decide to sell their rental properties, leading to a shortage of good rental properties for prospective tenants. It remains to be seen whether the legislation will actually solve the issues that it is supposed to.”
Scott Goldstein, partner and property disputes specialist at law firm Payne Hicks Beach, predicted a “huge surge” in section 21 notices served in the time before the legislation takes effect and a bulge in possession proceedings two months later when the notices expire.
He added: “The county court system is completely broken. It now takes many weeks to process claims. We must hope that the government invests in the courts to cope with the expected influx in new claims.”
Oli Sherlock, managing director of insurance at rental platform Goodlord, said: “The Conservative Government offered the industry something of a fudge around the scrapping of no fault evictions, with vague promises to introduce it once the courts were ‘ready’.
“Whilst we agreed with the sentiment of this, there was no timeline or action plan announced alongside. In contrast, it looks like the Labour Government will scrap S21 outright and the courts will need to find a way to cope.”