Evictions as we know them are about to change as the Government doubles down on plans to scrap section 21 “no fault” evictions. The intention behind the Renters Reform Bill 2022 is to create a safer, more accessible rental system for all. This will mean that a residential tenancy agreement can only come to an end if the tenant decides to leave or if the tenant breaches the terms of their agreement.
Recent polls have suggested that ‘no fault’ evictions are at an all-time high following the lifting of the ban on evictions during the COVID pandemic. The new reforms mean that landlords will undoubtedly worry about their rights and how to get their properties back. The good news for landlords is that where there is a breach of tenancy, the landlord can still use the section 8 procedure which is also set to be re-visited and extended.
In addition, there is talk of a register of landlords, a new residential tenancy portal and the introduction of a Private Renters Ombudsman which many landlords are likely to view as yet more unwelcome red tape, however it is clear that in making these new rules that tenants’ welfare and security are at the top of the government’s priority list.
It seems likely that we will see a wave of landlords using section 21 before the ban is imposed (anticipated in May 2023) to evict tenants whom they would otherwise be happy to keep on for fear of not being able to gain possession in the future and a number of those landlords could go on to sell before the new rules hit potentially removing a valuable source of housing stock from the market. It remains to be seen whether those properties will be sold on to another buy to let landlord or whether there will be a rental property shortage.
As there are to be limits on rent reviews and increases, landlords may increase the asking price for rental properties now before the implementation and some deeper thought may be required regarding the impact this will have on the private rental sector and indeed the housing market as a whole.
Whilst the changes are a welcome reform against rogue landlords, the reality is that it is likely to impact all landlords (the good and the bad) and the real question is whether we will see the current over-exposed court system clogged up further with section 8 possession claims.
If you have any questions about the above information, or require assistance with a property related dispute, you can contact Natalie at [email protected] or on 020 7725 8040.