Section 21 Notice: The Unintended Consequences of Losing

On Feb 02, 2022, The Government announced its long-awaited Levelling Up White Paper that included news of the intention to abolish the Section 21 Notice. If this happens iHowz believes that there will be serious, if unintended, consequences to landlords in the UK.

The Levelling Up White Paper can be seen here.  The White Paper sets out how the government intends to spread opportunity more equally across the UK. Noteworthy to landlords the Levelling Up Paper states:-

Section 21 ‘no fault’ evictions will be abolished
  • The government aims to ensure that, for the first time, all homes in the Private Rented Sector meet the minimum standard, known as the Decent Homes Standard.
  • The government will abolish Section 21 ‘no fault’ evictions. This planned move aims to end the unfair practice of landlords being able to evict renters without just cause or reason.
  • The government will consult on the plan to introduce an official landlord’s register.
  • They also discuss a crackdown on rogue landlords planning fines and bans to deter repeat offenders from subjecting renters to poor living conditions.
  • A new £1.5 billion Levelling Up Home Building Fund will be launched to boost home ownership. This fund will provide loans to SMEs and support the UK government’s wider regeneration agenda. This regeneration agenda will apply to areas in the UK that are a priority for ‘leveling up’.
  • The government will further commit to building more genuinely affordable social housing. A new Social Housing Regulation Bill will deliver upon the government’s commitments following the Grenfell tragedy in 2017.

See the Levelling Up paper here

Don’t forget our campaign to ensure MPs are aware of the consequences of losing Section 21.  See below

iHowz is very concerned about the potential unintended consequences of losing Section 21

Ihowz wrote to all MPs, expressing concern over the potential consequences of removing the Section 21 Notice in the Private Rental Sector (PRS) as part of the Renters Reform Bill mentioned in the Queen’s Speech.

If the government were to abolish the Section 21 Notice, iHowz has concerns that:-

  • Many landlords will be unwilling to offer a tenancy unless the applicant has perfect references.
  • The social housing sector will face an increased strain whereby vulnerable tenants can no longer find accommodation in the PRS.
  • Reduced supply of rental properties will drive up rents and associated housing benefit costs
  • Due to having limited control over their tenants’ behavior, more landlords might leave the PRS. This exodus could place a further strain on the social housing sector.

We have just sent the attached summary paper to all MPs, with the potential solution:

  • Introduce a sliding scale of notice dependent on length of tenancy
  • Consider financial compensation for ending longer tenancies using Section 21

Note, that we also sent a detailed paper to Ministers, and those MPs who have property interests.

If you share our concerns about the impact of losing Section 21 on the industry, we encourage you to write to your MP, both at your residence and your property locations. You can find your MP here.  We have intentionally not included a template letter, as we feel it better if you express your concerns in your own words.  It doesn’t take many letters for an MP to take notice, and it doesn’t take many MPs lobbying ministers for them to consider these views seriously.

We are so lucky we live in a democracy – act now, and write to your MP today.

(For more detailed information and the full run-down please take a look at our long-format post with everything you need to know to date).

 

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