Hopes for implementation of Section 21 Reform dashed
With the decision to call a general election on 4 July, the Renters (Reform) Bill – the government’s plan to transform the private rented sector for tenants and landlords alike – will not be passed.
Despite a promise to outlaw no-fault evictions during Theresa May’s premiership, the bill, which was first announced in 2019, took over a year to go through parliament, with several amendments along the way. One of the main objections was that it would lead to courts being overwhelmed with complex eviction cases.
The legislation reached the House of Lords in April this year, but it was confirmed on 24 May that it did not make the ‘wash-up’ period, where bills are quickly progressed once a general election has been called.
As such, the promise to abolish no-fault evictions will now not be fulfilled – any parliamentary business not completed by the end of ‘wash-up’ period cannot become law and cannot be carried over to the next parliament.
What is Section 21?
Section 21 of the Housing Act 1988 enables private landlords in England and Wales to evict tenants on periodic or assured shorthold tenancy agreements, without the tenant having broken the conditions of the tenancy agreement. Commonly known as ‘no-fault evictions’, they were set to be scrapped under the new Renters (Reform) Bill.
Section 21 has been frequently used to evict tenants so that landlords can repossess their property when their circumstances change, for instance, if they need to sell it, redevelop it or move into it.
Since the announcement of the proposed Renters (Reform) Bill in 2019, 84,650 households have approached their local authority for homelessness support because they had received a Section 21 notice.
While intended to end no-fault evictions, the bill was also aimed at giving landlords ‘comprehensive, fair and efficient grounds[i]’ for reasonable repossession, including when they want to put a property up for sale or move in. Moreover, the bill was set to strengthen protections for landlords when tenants deliberately withhold rent or commit anti-social behaviour.
Legal help for landlords and tenants
If you are a landlord needing to take repossession of your rental property or a tenant having issues with your landlord, expert legal advice and support can help resolve problems quickly and fairly, while alleviating much of the stress and worry that these situations can give rise to. Wilkinson Woodward’s experienced solicitors are committed to working constructively with all parties to help resolve any issues.