Section 21 No-Fault Evictions

What could changes to section 21 no-fault evictions mean for the property sector?

With the new government being elected it is important to see the impact this will have on landlords and tenants. Although Labour have been in power less than a month, one of their main campaign and manifesto points was to immediately ban Section 21 (no-fault evictions).

Section 21 currently allows a landlord to evict a tenant by providing a two month notice once their fixed term contract has come to an end, with the landlord not required to provide any grounds for the eviction.

Although it is currently unclear how or when Labour will be able to abolish Section 21 they are going to need to address the further capacity issues this will cause within the court systems. Previously, the Conservatives outlined that any changes made to section 21 would need to follow substantial reforms to the current court system for renters and Landlords.

With the recent increases in regulations and the rising financial distress on landlords, the removal of Section 21 could provide a further reason for landlords to consider leaving the sector. In turn this could lead to a further increase in rent due to the decrease in availability of rental properties.

As no official announcement has yet been made when the removal of section 21 will happen, we can only hope that the Labour government will give the property sector sufficient time to prepare for the changes and that any new regulations are fair on both renters and landlords.

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Disclaimer - All information in this post was correct at time of writing.