Posts with tag: Section 21

Government data shows use of Section 21 eviction notices declining

Published On: November 23, 2021 at 9:29 am

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Shelter calls on Government to act on repossession reform promise

The number of repossession cases in the courts involving landlords using Section 21 ‘no fault’ eviction notices has dropped over the last two years, government data shows.

A new analysis of this data found that the number of cases brought to County Courts in England and Wales off the back of a Section 21 notice during the third quarter of this year was 55% less than the same quarter in 2019.

The assessment, undertaken by the National Residential Landlords Association (NRLA), shows also that this fall is not merely as a result of the temporary ban on repossessions in response to COVID-19.

The NRLA points out that even before the pandemic, between 2015 and 2019, the number of repossession cases brought after a landlord had served a Section 21 notice fell by 50%. It comes as further government data shows that fewer than one in ten tenancies in England are ended because a landlord asks a tenant to leave.

Ben Beadle, Chief Executive of the NRLA, comments: “These figures dispel the myth, peddled by some, that landlords spend much of their time looking for ways to evict tenants for no reason. Whilst we condemn any landlord who abuses the system, it is vital to remember that the vast majority of tenants and landlords enjoy a good relationship.

“It is in that spirit that the Government should develop its plans for a system to replace Section 21 in its forthcoming White Paper on rental reform.”

The NRLA has developed detailed proposals for a system to replace Section 21 notices that is fair to both tenants and landlords. It is calling for the new system to include clear and comprehensive grounds upon which landlords can legitimately repossess properties. This will need to address some of the most difficult areas, especially ensuring swift action can be taken against anti-social tenants who cause misery for their neighbours and fellow tenants.

Where legitimate possession cases do end up in court, the NRLA is calling for the Government’s plans to include proposals to speed up the process. At present it can take an average of almost 59 weeks from a private landlord making a claim to repossess a property to it actually happening.

Landlords concerned about eviction options and renters face homelessness as PRS awaits eviction reform

Published On: September 29, 2021 at 8:09 am

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Categories: Landlord News,Tenant News

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Shelter calls on Government to act on repossession reform promise

A lack of eviction options that will be available after the abolition of Section 21 notices remain a worry for landlords, says Intus Lettings.

500 British landlords were surveyed about the 2019 Renters’ Reform Bill, which proposes the abolishment of Section 21 eviction notices. Only 18% said they outright opposed the abolition of Section 21. However, many raised concerns about the best ways to protect themselves and their properties in the future, dubbing the proposals ‘craziness’, ‘absurd’ and ‘the worst thing that could happen to landlords’.

Hope McKendrick from Intus Lettings said: “Landlords’ key worries are that they will be left powerless to regain control of their properties in the event of a non-paying or poorly behaved tenant. They want to retain ultimate control of their own property and are concerned that the Renters’ Reform Bill will make this harder.

“We understand these concerns, however, at Intus Lettings we don’t believe that the Bill needs to create a panic for landlords. Experience tells us that the key to successful tenancy agreements lies in thorough vetting of tenants and using a quality agent to manage the rental process and we found that almost half of landlords we spoke to used an agent to manage their lettings.

“With over 2.6 million private landlords in the UK, the property lettings sector is large and the Government will need to properly listen to their voices as it finalises its proposals.”

Generation Rent has looked at the current level of evictions as the private rental sector (PRS) awaits the eviction reform. It has found that more than 40,000 households in England have been threatened with homelessness by landlords using ‘no-fault’ eviction grounds in the two years since the government promised to abolish Section 21 of the 1988 Housing Act.

As the Government develops its White Paper on the PRS, Generation Rent is calling for measures that allow renters to challenge evictions when the landlord wishes to sell, and provides them with financial support if forced to move for reasons outside their control.

Generation Rent has found that between April 2019 and March 2021, councils dealt with 557,030 cases of homelessness, of which 91,710 were private tenants facing eviction. Of these, 44,040 households were facing eviction due to their landlord selling up, re-letting or evicting following a complaint by the tenant. This figure represents 0.9% of England’s 4.7m private renter households.

Alicia Kennedy, Director of Generation Rent, said: “Being forced to move for reasons outside your control creates unimaginable stress, uproots you from your community and disrupts children’s education. Right now, landlords need no reason to inflict this on their tenants. The government has rightly committed to the abolition of Section 21 evictions, but this is too late for the thousands of renters who have faced homelessness while the reforms have been delayed.

“To give renters the security that everyone should expect from their home, the government must make sure that the use of new eviction grounds for sale is minimised and landlords who force their blameless tenants out provide adequate financial support.”

Landlords will still be able to use a Section 8 notice to evict tenants if they have broken the terms of the tenancy. An outline of the Bill’s proposals is set to be released in autumn 2021.

Insecure tenancies cost private renters £229 million a year

Published On: September 7, 2021 at 8:14 am

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Renters (Reform) Bill to cost letting agents £278.7m according to government

Private renters are spending an estimated £229 million every year on unwanted moves, an analysis from Generation Rent reports.

The 2019-2020 English Housing Survey found 134,000 private renter households moved home after either being evicted, reaching the end of a fixed term tenancy, or being faced with a rent increase.

Generation Rent has called on the Government to introduce open-ended tenancies as part of its reforms to the rental market. Where landlords wish to sell up or move in, they should pay the equivalent of 2 month’s rent towards tenants’ moving costs, to minimise the stress of moving.

At present, renters can be forced to move home if their landlord increases the rent to an unaffordable level or issues them with a Section 21 ‘no fault’ eviction notice after a fixed term ends. However, the Government has committed to abolish Section 21.

The new analysis by Generation Rent found that the average up front cost of an unplanned move for the median private renter household is £1,709. This includes:

  • The deposit on a new home, worth five weeks’ rent (£808) 
  • Two weeks paying rent on two properties while moving (£323) 
  • Time off work to view properties, pack, and move home (£250 for 28 hours at minimum wage)  
  • Cleaning costs (two hours at £24) 
  • Van hire (one day at £34)  
  • Broadband installation (£20) 

Generation Rent also looked at how different renters are affected. This figure is highest for a single parent with children, at £1,451 per person, and lowest for sharers in a three-bedroom property, at £731 per person.

It’s analysis of the Government’s English Housing Survey found that 57,000 households moved in the private rental sector after being evicted from a private tenancy. 66,000 moved due to a fixed-term tenancy ending, and a further 11,000 moved due to a rent increase. This has resulted in a total of 134,000 home moves a year that were unwanted. Given the cost of moving for each household, these unwanted moves cost renters £229 million a year.

A Generation Rent survey of 884 people who have rented from a private landlord in the last 5 years found that 56% paid more rent when they last moved home. Alongside financial costs, 44% reported having to move further away from friends or family, 15% were further from a hospital, and 5% had to move their children to a different school.

Alicia Kennedy, Director of Generation Rent, comments: “Renters are shelling out millions to pay for house moves that they have no choice but to make. Not only is moving home expensive, it can force renters to move away from essential support networks, family and friends, and can disrupt children’s education. Renters deserve secure and stable homes where they can put down roots in their communities and thrive. With tenancies so short and evictions so common, this right is out of reach for millions of private renters.

“Generation Rent is calling on the Government to commit to open ended tenancies in the upcoming Renters Reform White Paper, and to make landlords contribute to renters’ moving costs in the event of an unplanned and unavoidable move.”

Katie, a private renter living in Brighton, comments: “The last time I moved it cost me upwards of £800. I rely on welfare due to my disability, so moving home takes a huge toll financially. My new flat is more expensive, and further away from my local hospital, which I make regular trips to. I’m worried about the prospect of moving again if my current landlord puts the rent up or wants to sell the property, as I’m not sure how I would afford it.”

Unfair evictions costing councils more than £161m per year

Published On: May 26, 2021 at 8:27 am

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168% increase in people facing eviction, Government figures show

Ending unfair evictions could reduce homelessness by 9% and save the public purse £161m per year, a Generation Rent analysis finds.

Since April 2018, 68,430 households have faced homelessness after their landlord evicted them to sell or re-let the property or in retaliation for a complaint.

Generation Rent today publishes proposals for tenancy reform which would:

  • Require landlords who wished to sell to compensate their tenants for a blameless home move
  • Ban evictions where landlords simply wished to replace their tenants or avoid responding to a complaint

In the Queens Speech, the Government has committed to publishing a White Paper in the autumn which would set out reforms to protect renters. This includes the abolition of Section 21 “no fault” evictions, a lifetime deposit that transfers between tenancies, and regulation of landlords, which are all policies Generation Rent has campaigned for.

Figures from the Ministry of Housing, Communities and Local Government show that out of 755,250 households made homeless or facing becoming homeless between April 2018 and December 2020, 140,950 had been in a private assured shorthold tenancy (19%). Of these households, 68,430 had faced an unfair eviction. This was either following a complaint about disrepair or due to their landlord selling or re-letting the property (49% of private rented sector cases and 9% of the total).

Generation Rent says these evictions have placed a burden on local authorities. In 2019-20, the most recent year for which we have figures, councils in England spent £543m on prevention, administration and support activities around homelessness. Each of the 289,810 homelessness cases that year cost councils an average of £1,874 to respond to.

In 2019-20, there were an average of 88,533 households in temporary accommodation, costing councils a total of £1.187bn, which is an average of £13,410 per household.

Generation Rent estimates that unfair evictions directly cost councils £161m in 2019-20 – through responding to 28,150 homelessness cases and housing an estimated 8,057 households who had been evicted unfairly in temporary accommodation. This figure does not include households evicted as a result of rent arrears.

In a report published today, “A safe place to call home: Ending unfair evictions & reforming renting”, Generation Rent recommends five reforms to end unfair evictions and give renters’ greater long-term security in their home: 

  • Open ended tenancies 
  • More time to find a new home 
  • Compensation for a blameless move 
  • No excessive rent increases to force an eviction 
  • No mandatory evictions for people in rent debt 

Alicia Kennedy, Director of Generation Rent, comments: “The government’s commitment to abolishing Section 21 means that landlords will no longer be able to evict tenants just for requesting repairs or on other spurious grounds. But without further protections tenants could still face hardship and homelessness if their landlord decides to sell up. It cannot be right for a housing provider to leave their customer in the lurch and expect tenants and taxpayers to pick up the bill. Renters can never enjoy a stable life if they can have the rug pulled from under them, so the government’s reforms must make sure renters get proper support during unwanted moves.”

Two years have passed since Government pledged to end ‘no-fault’ evictions

Published On: April 16, 2021 at 8:23 am

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168% increase in people facing eviction, Government figures show

This week saw the two-year anniversary of the Government making the decision to end Section 21 ‘no-fault’ evictions in the private rental sector.

According to a survey commissioned by Generation Rent, 8% of respondents have received a Section 21 eviction notice since March 2020, which would represent 694,000 private renters in England. 

32% of those surveyed are concerned they will be asked to move out this year, which would represent 2.78m private renters across England.

To support renters in their calls for change, the Renters Reform Coalition has been formed – a broad group of 20 leading charities, think-tanks, housing and renter organisations, who are committed to ensuring that private renters have a safe, affordable and stable home, where they can live and flourish.

The coalition has formed to ensure that the Government lives up to its promise and brings forward plans for a redesigned system that better serves the nation’s millions of private renters.

The Renters’ Reform Bill, announced in the last Queen’s Speech, outlined the Government pledge to end ‘no-fault’ evictions as well as making further changes to the private rental sector.

The Renters Reform Coalition outlines its recommendations for the Renters’ Reform Bill and beyond in the adopted policy principles on its website. These principles call for the necessary reforms needed to end ‘no-fault’ evictions and deliver stability, affordability and safety for renters.

Sue James, Chair of the Renters Reform Coalition, says: “Private renters face high rents, poor living conditions and perpetual instability. This causes needless disruption to people’s lives: their finances, work, health and their children’s education. Renters need certainty to enable them to put down roots in communities and create real homes in rented properties.

“Having been a front-line legal housing advisor for many years I have seen the difference that good quality, secure housing can make to people’s lives. We need to see people’s homes as more than just terms in a contract.

“The breadth of organisations that have come together to form the coalition highlights the importance of this issue. It is essential that reform of private renting is a key part of the government’s plans to improve the housing system. The Renters Reform Coalition has formed to ensure that the government keeps its promise. We welcome the opportunity to work with the government to create a renting system that is fair and fit for the future.”

Alicia Kennedy, Director of Generation Rent, said: “A Section 21 notice pulls the rug out from under you. As long as the landlord serves it correctly, you have to move out. That means very few tenants challenge it in court. And because landlords don’t need a reason for eviction, it also means that many tenants live in fear of losing their home and families throughout England have no confidence to put down roots in their local area.

“Renters have been waiting two years for the government to make good on its promise to ban these unfair evictions. If it weren’t for Section 21, 700,000 renters would not have faced an unwanted move during a pandemic and millions more would have confidence to plan their lives.”

Beyond Section 21 – Consequences of abolishing ‘no-fault’ evictions

Published On: October 21, 2020 at 9:13 am

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Landlords welcome plans to tackle unruly tenants

The Lettings Industry Council (TLIC) has released a report that looks at the possible impacts of abolishing Section 21.

‘Beyond Section 21’ was released this week, detailing the negative consequences that the abolition of Section 21 might bring about. This includes a reduction in rental property supply by up to 20% and rising rents. It also makes recommendations to balance the impact.

The report’s findings suggest suddenly ending Section 21 will have the following impact:

  • A tougher screening process for tenants, impacting those on housing benefits, lower income families and insecure employment the most
  • A fall in the private rented dwelling stock in England by 20%, with the impact falling heaviest on vulnerable tenants claiming benefits, as landlords seek to either leave the PRS or move towards other market segments such as short-term lets
  • Upward pressure on rents as a result of the negative impact on the numbers of homes available. Around 600,000 homes could see rent increases (13%of the sector)
  • Increased pressure on the justice system by tripling the court caseload with an additional 45,000 possession hearings and court capacity severely challenged

Theresa Wallace, Chair of TLIC, says: “The PRS has doubled in size over the last 20 years, which means any changes to the current regulations will have a huge impact on the life of millions of citizens. 

“It is vital to strike a balance between the needs of tenants for long-term security and legal certainty, restoring landlord confidence to ensure an adequate supply of private rented homes. The social cost of abolishing Section 21 lies in the economic effects it will release and how the market will react to it. 

“That is why the Government must not proceed with its proposal to do so without careful consideration of the impacts and implementation of measures to mitigate such negative consequences.”

In the ‘Beyond Section 21’ report, The Lettings Industry Council suggests implementing the following set of four measures to balance the impact of abolishing Section 21: 

  1. Strengthening the grounds of Section 8 for which it can be used and to allow an accelerated process
  2. The use of meaningful mediation to reduce the number of disputes resulting in court proceedings before they commence and save both sides substantial legal costs
  3. Court reform including a modernised, specialist housing court for all housing related hearings, ensuring timescales for repossession can be reduced and a viable route for tenant claims against landlords for disrepair, poor conditions and management
  4. Bailiff reform because securing the services of county court bailiffs is one of the longest delays for landlords, following the grant of a warrant for possession

Paul Shamplina, founder of Landlord Action, says: “These four measures make sure that the tenants’ need for long-term security regarding their tenancies is met while at the same time respecting the landlords’ right to use their property economically and according to their needs.

“Some of the measures, such as the mediation process and the bailiff process reform can be introduced on relatively short-term planning.  Whilst we acknowledge that court reform and a review of Section 8 requires longer-term preparation, if the government were to adopt the step-by-step implementation of measures outlined in this report, it would not only prevent a short peak increase in serving Section 21 notices, but also give all relevant parties enough time to adapt to the change in legislation.

“We are confident that with faster and easier access to justice, banning both criminal landlords and anti-social tenants from the PRS, as well as the improved communication between landlords and tenants through mediation, both parties trust in the PRS will increase. 

“Providing greater legal certainty will lead to further growth within the PRS, as more private landlords will be willing to rent out their properties and tenants will be provided with a broader range of properties they can choose from.”