The End of Section 21: What Landlords Need to Know and Do Differently
It’s the change within the Renters’ Rights Bill that landlords have most been dreading and which also formed a major part of Labour’s election promises last year. The abolishment of Section 21, also known as no-fault evictions, has dominated headlines as one of the biggest changes coming to the private rental sector as part of the bill.
Although the Renters’ Rights Bill has now progressed through the committee stage in the House of Lords and hits report stage this month, the timeline for when Section 21 will actually be abolished and the new bill will come into force is still unclear. However, landlords must be ready for the change.
What it means and what it aims to stop
The abolition of Section 21 evictions accompanies a move to a simpler tenancy structure where all assured tenancies will be periodic rather than fixed. Both the end of Section 21 and the move to periodic tenancies are designed to provide more security for tenants. The changes also aim to give tenants greater powers to challenge landlords who display poor practice in the handling of their rental properties and who may use unfair rent increases to force tenants out.
Currently, Section 21 of the Housing Act 1988 allows landlords to evict tenants with two months’ notice, without having to give a specific reason for why they want the tenants out. Properties can be relet to new tenants immediately.
What landlords must do after Section 21 is abolished
After Section 21 is abolished, eviction notices will instead be served under a revised Section 8 of the Housing Act, where specific reasons for eviction will now need to be given. These will include being able to regain their properties at any point from tenants who are at fault, such as if they are displaying antisocial behaviour, damaging a property, or have fallen into significant rental arrears. Landlords will have to provide evidence for the grounds to be used.
However, landlords must note that under the latter grounds of eviction for rental arrears the notice period, as well as the time elapsed before an eviction can be instigated, have both increased. The mandatory threshold for eviction will increase from two to three months’ arrears while the notice period will double from two weeks to four. The idea is that tenants have more time to repay what they owe, enabling them to stay and helping landlords avoid unnecessary costs, according to the government.
Landlords will still be able to regain their properties for a limited number of no-fault reasons, but these must now be specified and be legally valid. They include if landlords want to sell or move into a property themselves.
The expanded and clarified new grounds for possession must be proved by the landlord and served under Section 8 of the Housing Act with tenants given four months’ notice and an initial 12-month protected period.
If landlords haven’t properly protected a tenant’s deposit or have failed to register their property on the private rented sector database that will also form part of the Renters’ Rights Bill, then they won’t be able to gain possession using these grounds. To further protect tenants, landlords won’t be able to relet a property for at least 12 months after serving a Section 8 eviction notice if they don’t then sell or move in themselves.
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