What does the end of Section 21 mean for Landlords?

If you’re a landlord in England, chances are that something called Section 21 will have been on your mind lately – and with good reason. Changes to the 1988 Housing Act, first proposed in April 2019, will involve the abolition of Section 21 of the act and the end of “no-fault” evictions, as well as creating a new framework for the repossession of property.

What is Section 21 and what is it used for?

For Assured Shorthold Tenancies (ASTs) – which make up the majority of private sector rentals in England and Wales – Section 21 allows landlords to reclaim their property with two months’ notice without claiming fault on the part of the tenant. A tenant can be evicted through a Section 21 notice even if they have not broken any aspect of the tenancy agreement, hence the term “no-fault” eviction. Currently, Section 21 can only be served once a tenancy’s fixed term has ended, or if a tenancy has no set end date.

When will Section 21 be abolished?

As of yet, a date hasn’t been announced for the bill to reach parliament, with its original deadline pushed back due to Covid-19. The publication this month of the long-awaited white paper brings this process a major step closer.

What is replacing Section 21?

Section 21 of the Housing Act is not the only mechanism for eviction of a tenant and the proposals for the Renters’ Reform Bill include provisions that would strengthen Section 8 of the Act. So, while there will be an end to “no-fault” evictions, this means landlords will be given further grounds for repossession, including in order to sell their property, or move in themselves.

What does this mean for landlords?

Without Section 21, landlords will need to state legitimate grounds for repossessing their properties. The assumption being that unless the landlord is intending to sell the property or move in themselves, tenants who don't break their contracts should have a right to stay indefinitely.

With such significant potential legislative changes, landlords – and prospective landlords – might be left worrying about their properties and the potential damage difficult tenants could cause.

How can Farnworth Rose Solicitors help?

If you are worried about a non-compliant tenant and want to evict using the relatively straightforward Section 21 process before the reforms come in to place, please contact our Landlord and Tenant team so that we can commence action to recover your property. Call 01282 695400 or click here to send a message.