Liz Truss commits to abolishing no fault section 21 Notices
Clarification for the private rental sector on the future of section 21 notices
The private rented sector is in a period of challenge and uncertainty,
In November 2019, the Conservative party manifesto included a commitment to introduce a Renters’ Reform Bill. The proposals are the biggest change to the private rented sector in more than 30 years and a key part of those proposals was to abolish “no fault” section 21 Notices.
With Liz Truss stepping into Boris Johnson’s shoes and a shakeup in cabinet, the future of the Renters Reform Bill seemed somewhat uncertain. Then, on Tuesday 12 October a Times Political Editor reported that the Times had been informed that abolishing section 21 Notices is “not considered a priority and could be killed off entirely, despite being a manifesto commitment.”
This was quite a bold statement and unsurprisingly the announcement was met by hostility from the Labour party and organisations such as Generation Rent. However, yesterday Liz Truss confirmed she remains committed to abolishing section 21 Notices in a dramatic turn of events.
Whether it is another conservative U-turn or a case of misreporting, it is undoubtedly clear that all parties support the premise that “everyone deserves to live in a safe and secure home” and that reform is required. However, the Reforms must strike a balance between providing tenants with security in rented accommodation and giving landlords confidence that the private rented sector is a good place to invest.
If section 21 Notices are abolished, landlords must have the ability to obtain possession of their property swiftly when they have a valid reason to do so. There are plans to strengthen the grounds for possession under section 8, but the devil will be in the detail and these grounds must be carefully considered, clear and fit for purpose.
The second key challenge to the removal of section 21 is the ability of the courts to deal with the increase in hearings required to determine possession on the newly drafted section 8 grounds.
For years, landlords, who in fact had grounds for possession, have used section 21 to avoid the need for a court hearing and make use of the accelerated possession procedure, a paper-based claim with no requirement for a hearing. If this route is scrapped, all claims will need to proceed through the courts and be determined by a judge at a hearing, usually in person. This will undoubtably place an already over stretched court system under immense pressure, which will in turn cause a delay in the process of obtaining possession.
Whilst court reform is also firmly on the agenda this is no easy task, and a huge amount of work is needed to bring the courts up to the standard required to deal with cases efficiently and justly.
It will be incredibly important that landlords get quality and timely advice to ensure their claims proceed as swiftly as possible through the court system. Any mistakes with paperwork or lack of evidence to support the grounds for possession will put landlords even further on the back foot.
The team at Woodstock will continue to follow the progress of the reforms and update our readers on any new developments. Our advice for now is know your portfolio and stay up to date so you can react to changes quickly and with confidence.
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