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Section 21 Reform Could put Tenants in a “Weaker Position”
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The Government’s new Section 21reform could put private tenants in a “weaker position” in the long run, according to a Partner from property law firm Collyer Bristow.
On Monday (15thApril 2019), the Government announced radical Section 21 reform, which will create open-ended tenancies in the private rental sector and restrict a landlord’s ability to evict their tenants.
The Section 21 reform to so-called no fault evictions under the Housing Act 1988, together with recent changes to taxation on buy-to-let landlordsand the upcoming ban on lettings fees, could make investing increasingly difficult for private landlords, and may dissuade institutional landlords from making further investments, Collyer Bristow believes.
Paul Henson, a Partner in the Real Estate Litigation team at Collyer Bristow, says: “The Government has a Dickensian view of private landlords offering substandard homes for extortionate rents. Whilst the market is far from perfect, this view is outdated. Private landlords want tenants in their homes, and most tenancies are, in fact, ended by the tenants themselves.
“The demand for rented homes continues to grow, particularly in London and the South East. The market is attracting considerable investment from financial institutions with smart and professional build to rent offers. This professionalisation of the rental market is needed and desirable.”
He continues: “Government reform must focus both on the needs of the tenant and the landlord. Any reform that makes the market less desirable for private and institutional landlords could leave tenants in a much weaker position in the longer run.
“We wait to see the full detail of the Government’s reforms and particularly the suggested amendments to Section 8 (fault based) procedures, and how they intend to expedite the court possession process.”
Landlords, do you agree that Section 21 reform could leave your tenants in a weaker position in the long-term?
