Posts with tag: Section 21

Generation Rent gains public support for tenants forced to move by Section 21

Published On: October 14, 2019 at 8:51 am

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Generation Rent

Tenants should get financial support if they have to move out after a landlord decides to sell their home or move back in themselves, according to a poll commissioned by Generation Rent.

The poll was called for due to the following issues with the private rental sector (PRS) and Section 21 notices:

  • 146,000 households have been asked by landlords to leave their homes in the past three years (English Housing Survey).
  • With moving home typically costing £1400, no fault evictions cost private renters around £70m a year .

Conducted by Survation, the poll asked over 2,000 people about their experiences moving. The results show:

  • 58% support relocation payments made to tenants who are forced to move. This rose to 71% amongst private renters.
  • 52% of private renters took more than four days to pack, move and clean at the end of a tenancy. This is equivalent to £229.88 in lost working hours if working four 7-hour days at minimum wage.
  • 40% of private renters paid rent on more than one property at once when moving homes. 40% of these renters also paid rent on two properties for more than two weeks.
  • 41% of private renters took longer than three weeks to find and secure a new home.
  • Homeowners spend more time moving, with 30% taking over a week. It takes them two months on average to find a new home. However, it’s worth noting that only private renters face being forced to move through no fault of their own.

The Ministry of Housing, Communities and Local Government (MHCLG) is currently consulting on its decision to end Section 21 notices, following a campaign by the End Unfair Evictions coalition. 

The coalition is also calling on Government to introduce relocation payments to support tenants who are forced to move in these circumstances. This would cover the cost of a deposit (five weeks’ rent), upfront costs of moving, and a period of paying rent on two properties due to overlapping tenancies.

Over 36,000 people have so far signed the coalition’s open letter to Boris Johnson and Housing Secretary Robert Jenrick, which demands better protections for tenants.

Generation Rent estimates the typical costs of moving home in the private rental sector to be £1402.27, comprising:

  • Two weeks’ rent on a second property at £311.54 (median 2-bed in England) 
  • Five weeks’ rent upfront as a deposit at £778.85 
  • Carpet cleaning at £48 (for 1 single and 1 double bedroom) 
  • Van hire at £34 (one day hire via EasyVan) 
  • Cost of time at £229.88 (28 hours at minimum wage) 

Generation Rent has also highlighted that a relocation payment would reduce the financial hardship that tenants face and encourage landlords to consider alternative arrangements.

It would also discourage landlords from abusing new “no-fault” grounds to evict tenants. This requirement to pay relocation costs already exists for landlords who want to evict tenants to redevelop properties. 

Caitlin Wilkinson, Policy & Public Affairs Manager at Generation Rent comments: “Unwanted moves are expensive and stressful for renters, who can currently be evicted with just two months’ notice for no reason at all. Landlords who want to sell or move back in should consider alternatives that allow their tenants to stay put, like selling to another landlord. 

“Tenants who are still forced to move on no-fault grounds deserve support. Relocation payments would help cover the upfront costs of moving house, such as deposits, the time it takes to move house that tenants don’t get back, and a period of paying rent on two properties at once. 

“Tenants should not have to bear the costs of their landlords’ personal decisions and the wider public agrees.”

Generation Rent campaigners take Section 21 protest to Government’s door

Published On: October 9, 2019 at 9:42 am

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A campaign took place yesterday outside the Ministry of Housing, Communities and Local Government to highlight unfair evictions across England.

Organised by Generation Rent, London Renters Union and ACORN, these housing campaigners were protesting against the use of Section 21 eviction notices.

A consultation is currently in progress on the MHCLG’s decision to end Section 21. However, under the current proposals, tenants could still be forced to leave their home if a landlord wished to sell the property or move into it themselves. Tenants are also not protected from unaffordable rent hikes.

Protesters are calling on the Government to end unfair evictions and provide support and security to tenants who are forced to leave their homes.

Over 40,000 signatures have so far been gathered for an open letter of demands to Boris Johnson and Housing Secretary Robert Jenrick. This has been organised by the End Unfair Evictions coalition.

Generation Rent highlights that Section 21 is the leading cause of homelessness in the UK. Its figures suggest that 216 families are made homeless by Section 21 every week.

Generation Rent
Photo credit © Jess Hurd

The notice allows unscrupulous landlords to use revenge evictions. Citizens Advice states that private renters in England who formally complain about issues such as damp and mould in their home have a 46% chance of being issued an eviction notice within six months.

An end to section 21 is just one of the radical reforms called for by campaigners to reform the housing system. Campaigners are demanding rents should be capped at one third of local incomes.

Georgie Laming, Campaigns Manager at Generation Rent comments:

“We all deserve a house we can call home. But Section 21 means private renters can be forced out of their homes for no reason at all, meaning we can’t complain about disrepair or plan our lives. We need a radical overhaul of the private rented system.

The Government’s proposed reforms are a step in the right direction but don’t go far enough and will allow many unfair evictions to continue. Renters deserve a secure home, which is why we’re demanding the Government take action to end unfair evictions for good.”

Kirsty Archer, London Renters Union says:

“Londoners need a housing system that prioritises providing everyone with homes in which they can flourish rather than the profits of private investors. Ending these unfair evictions is a vital first step to fixing our broken housing system. 

“Millions of Londoners live with the constant fear of eviction and the stress of unaffordable rent. Instead of looking at ways to maintain the power landlords have over our lives, the government must end evictions and introduce rent controls.”

Jonny Butcher, ACORN National Field Director, said: “The government needs to choose which side they are on – families or buy-to-let investors. Genuine protection from eviction means that private tenants can lay down roots for the very first time without the fear of being forced to move every six months.

“If this government goes back on its commitment to end no fault evictions, they can expect a huge backlash from a growing movement of organised tenants across the country, as well as from an expanding renters’ vote bloc at the next general election.”

Megan Bentall, Campaigns Manager at 38 Degrees comments:

“It’s not right that landlords can abuse loopholes in current laws to evict families from their homes – with no warning and for no reason. And if you’re a family in this situation it’s easy to feel like you’re alone and powerless.

“That’s why almost 40,000  people – renters, homeowners and landlords alike – have signed this open letter, in solidarity with families affected by the current laws. Together we’re calling on the government to make sure their new law is fit for purpose, and protects renters across the country.”

Properly funded housing court needed to improve justice for landlords and tenants

Published On: October 7, 2019 at 8:31 am

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The speed with which property repossession cases are being dealt with still isn’t good enough, as courts across the country are failing to follow their own rules.

The civil procedures rules provide a code to ensure courts deal with cases justly. According to these rules, the courts are expected to ensure cases are “dealt with expeditiously and fairly”.

The rules show that it should take around nine weeks from a landlord making a claim through the courts for a property to actually be repossessed. However, the Government’s statistics show that it is taking over 22 weeks.

The Residential Landlords Association (RLA) has highlighted that with the Government consulting on ending the use of Section 21 repossessions in the private rented sector (PRS) the number of repossession cases going through the courts will increase substantially.

Although the consultation commits the Government to developing “a simpler, faster process through the courts” for repossession cases, no detailed plans have been made.

The RLA argues that we need a properly funded housing court to speed up and improve justice for landlords and tenants. This should be matched by a clear commitment to ensure that landlords have to wait no longer than ten weeks between submitted a case for a property to be repossessed to it actually happening.

David Smith, Policy Director for the RLA, said: “Whilst the Government talks the talk on court reform it is failing to walk the walk. Words alone will not improve the court system for tenants or for landlords. What is needed is a firm plan for a fully-funded housing court, which reverses cuts that have made access to justice more difficult and take far too long. Tinkering with the existing system is simply not good enough.

“Without such fundamental changes the Government’s plans to reform the way landlords can repossess properties are dead on arrival.”

Number of councils backing Section 21 abolishment is rising

Published On: September 27, 2019 at 8:39 am

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Number of Councils Backing Section 21 Abolishment is Rising

Norwich City Council has this week unanimously agreed to write to the government urging them to continue with their plans to abolish Section 21 evictions. They are the latest in a string of councils to back the proposal to end ‘no-fault evictions’.

Beth Jones, Labour councillor who tabled the motion, said: “Section 21 haunts those in the private sector with an assured shorthold tenancy.

“With often only a six month tenancy they can, through no fault of their own, be forced out of a house that became home, where they have put down roots, in only a matter of weeks.

“Section 21 is the rogue landlord’s trump card. Without any good reason, or even reason at all, a landlord can apply for Section 21, forcing the tenant out in a matter of weeks with no redress.”

Cllr Jones said: “We’ve taken decisive and significant action to protect private renters in Norwich, but abolishing Section 21, which the Government needs to do, would be an enormous help.

“This motion adds to the campaign and movement which is growing in our city and nationally on this important issue.”

Norwich is not the first or only council to back the Government’s plans to abolish Section 21. Hackney Council, in London, voted in July to support the abolition. Also in July, Bath and Northeast Somerset Council voted to lobby for the abolishment of Section 21.
Generation Rent has released a list here of 22 councils in total that have voted to support the abolition.

Will scrapping Section 21 trigger a rise in homelessness?

Published On: September 20, 2019 at 8:53 am

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scrapping section 21

As many as 50% of Section 21 cases handled by Landlord Action, the tenant eviction company, are a result of tenants wanting to be re-housed by the council.

They believe the abolition of Section 21, and subsequent expansion of Section 8, could put thousands of tenants at greater risk of receiving a County Court Judgement (CCJ) and ending up homeless as local councils will not be obliged to re-house those with rent arrears judgements. 

Landlord Action has pointed out that Section 8 cases are for mandatory two months’ rent arrears. Although it is unknown how many Section 21 cases happen as a result of rent arrears, Landlord Action says it is the number one reason landlords serve notice.

There were 22,527 accelerated possession claims issued in 2018, according to data from the Ministry of Justice. Of those accelerated possession claims under Section 21, 10,127 resulted in evictions carried out by County Court bailiffs.

Therefore, if landlords are forced to use Section 8 route in the future, thousands more tenants will have rent arrears judgements against them, rather than simply being evicted using Section 21. In addition, more tenants could find themselves with a County Court Judgement (CCJ), which will severely impact their future credit rating.

Paul Shamplina, founder of Landlord Action, has commented on what this means for tenants: “Local councils will see when a tenant has a rent arrears possession order made against them so will consider that that tenant has made themselves homeless.  Therefore, the council will not be obliged to re-house them as they do at present under Section 21 accelerated procedure. 

“If those tenants cannot get accommodation in the private rented sector and cannot be re-housed by the council, what will happen to them?”

Paul Shamplina is also concerned that the figures indicate there will be an increase in Section 8 hearings due to landlords having their alternative option of Section 21 removed.

Recently, MHCLG attended Landlord Action offices shadowing the solicitors and paralegal staff to gain a greater understanding of the possession process, and what impact reforms to Section 8 and court processes could have.

“As well as a rise in homelessness, I believe there will be many other unintended consequences following the abolition of Section 21. These will include, but not be limited to; vulnerable tenants struggling to find accommodation as landlords become more selective; a surge in Section 21 claims as landlords feel increasingly powerless and opt to exit the market. 

“A shrinking private rented sector will result in further rent rises for tenants. In addition, unless anti-social behaviour is tackled within the reforms, unruly tenants will have the opportunity to remain in properties for longer causing landlords and their neighbours unnecessary stress,” adds Paul.

Landlords urged to fight for property repossession rights

Published On: August 21, 2019 at 9:09 am

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Landlords are being urged to back a legal case to protect their rights to repossess properties. 

This follows a recent court case in which a landlord’s attempt to regain their property was deemed invalid due to a dispute over a gas safety certificate.

The landlord was initially granted an order to repossess their property using a Section 21 notice. However, the tenant then successfully appealed on the grounds that they had not been provided with a gas safety certificate before they moved in.

Despite the landlord making the certificate available once the tenancy had begun, it was ruled by the Court that their Section 21 powers were invalid. It referred to a previous similar case in which the certificate was made available less than two weeks after the tenant moved in.

The judge in the appeal stated that if the gas safety certificate was not provided to the tenant before they took up occupation then a Section 21 notice could not be relied on to regain possession. The situation could not be resolved by serving one after the moving in date.

The Residential Landlord Association (RLA) is supporting the landlord, Trecarrell House Limited, at the Court of Appeal, on the basis that so long as the gas safety certificate is provided before the Section 21 notice is served, then it is valid.

The RLA argues that the case could breach a landlord’s rights under the European Convention on Human Rights on the basis that it deprives them of their possession.

It is calling on its members to back the case by making a financial contribution to support the case through a Crowd Justice website that has been launched today.

David Smith, Policy Director for the RLA, said: “Protecting the rights of landlords to repossess properties in legitimate circumstances is key to providing the confidence the sector needs to offer longer tenancies.

“The landlord in this case was not seeking to shirk their responsibilities and provided the certificates that were needed.

“We will fight to ensure that if nothing else, logic prevails. We urge those who agree to support the campaign by making a contribution to the costs.”