Posts with tag: Section 21

Fast Track Housing Tribunal Needed for New Eviction Process

Published On: July 5, 2019 at 8:25 am

Author:

Categories: Law News

Tags: ,

New research from Paragon shows that almost four out of ten adults would be happy to see the Government introduce the option of a fast track housing tribunal in the event that Section 21 is scrapped.

The plan to scrap the ‘no-fault’ Section 21 eviction process is currently being considered by the Government.

Paragon’s Private Rented Sector (PRS) Trends Report for Q2 2019 has taken note of the views and experiences of over 200 landlords. According to the results, 39% of landlords would like to see such a fast track put in place, if Section 21 of The Housing Act 1988 is abolished as planned.

Discussion began this year (April 2019) on the positives and negatives of removing Section 21 from the Act. It would mainly mean that landlords could no longer give tenants two months’ notice before evicting them from their property at any time after the initial fixed term of the tenancy agreement has ended.

In place of this procedure, the Government has proposed that Section 8 should be used by landlords instead. This requires them to prove to the court that the tenant is in breach of their contract.

As well as the introduction of a fast track housing tribunal, almost 24% of those surveyed agreed that a shorter court process is needed. 15% want to see a guaranteed way to cover their costs, and 7% want to have the ability to submit evidence online.

The maximum time period from serving a notice to taking possession of the property should not exceed eight weeks, agreed 84% of landlords.

John Heron, director of mortgages at Paragon, has commented: “Some of the main concerns for landlords around a move to the Section 8 eviction process relate to the efficacy of the existing court process.

“What we see here is widespread support for a fast track housing tribunal that can deliver a fair and timely solution for both landlords and tenants.”

4 in 10 Landlords Considering Selling if Section 21 is Dropped

Published On: June 20, 2019 at 8:19 am

Author:

Categories: Landlord News

Tags: ,

Government proposals to scrap Section 21 repossessions have raised concerns amongst landlords, with many saying that they would consider selling their properties rather than take the potential risk of being stuck with a bad tenant.

In a survey carried out by Landlord Action, a leading housing law specialist, 33% of buy-to-let landlords said they would leave the rental market if the government removed Section 21 rules without providing a clear alternative. 38% of those surveyed said they would definitely consider selling up upon hearing the news.

The proposals, designed to increase the amount of long-term tenancies in the UK, could in fact have the opposite effect. The study goes on to find that 70% of landlords would be less willing to consider long-term tenancies if Section 21 was removed.

Whilst the measures are supposed to combat so-called rogue landlords: A small minority that have been abusing rules to unfairly evict tenants,

Paul Shamplina, founder of Landlord Action states: “If this was the case [that Section 21 was scrapped], the government’s efforts could end up being counter-productive and harming the most vulnerable tenants”

He believes that the proposals will reduce competition in the market by discouraging some landlords from the business, driving prices up, making renting even more difficult for lower income tenants.

Section 21 was initially introduced to attract private landlords to the sector, as a means of allowing them to vacate their property quickly if they had good reason to believe that their investment was at risk. It became a hot topic after a small minority of landlords used the rule to unfairly evict tenants but for the majority, it is merely a safety net against financial loss.

Shamplina says: “Remember, landlords want tenants, and good tenants at that, to stay in a property as long as possible. The vast majority of landlords would have no interest in evicting a tenant who respects their property and pays their rent on time.”

He states that long term tenancies make business sense, meeting the needs of the changing rental market and believes that the government should incentivise landlords to give tenants longer tenancies.

At the same time, a clear definition of what constitutes reasonable grounds for eviction must be enshrined into law in order to fill the void that the removal of Section 21 will create.

Replacement Repossession System must Instil Landlord Confidence

Published On: June 4, 2019 at 9:06 am

Author:

Categories: Law News

Tags: ,,

Groups within the private rental sector (PRS) are warning that Section 21 repossessions should be kept as an option unless and until a new system is in place.

Such a system should provide landlords with the same level of confidence about repossessing properties in legitimate circumstances.

These groups have spoken out on behalf of landlords and letting agents, forming a ‘Fair Possessions Coalition’. They have united to spread the warning that plans to abolish Section 21 repossessions without a replacement would undermine investment in the sector at a time when private landlords are needed to provide homes to one in five households in England.

A statement from the Coalition has noted that whilst landlords much prefer to let to good tenants on a long-term basis, they also need to feel certain that in circumstances such as rent arrears or anti-social behaviour, they will be able to easily and swiftly regain possession of their properties. 

The Section 8 process will still be in place, but it is argued that it is not fit for purpose. Currently, landlords can repossess properties based on a number of grounds using this process, but it does not provide the level of certainty offered by Section 21. The current judicial process for dealing with possession cases is not only confusing for tenants but can take on average over five months from a landlord applying to the courts to the repossession actually taking place.

The Coalition believes that, instead of tinkering with the system, a comprehensive overhaul of the regulations and processes enabling landlords to gain repossession of their properties should take place. Clear grounds for repossession that cannot be exploited by criminal landlords or unreliable tenants are needed.

A new dedicated and fully funded housing court should be established as part of the reform. The Coalition believes that it should make better use of mediation, taking into account models in use abroad. Meetings should be held in local venues, such as schools and community centres, in order to make the process less intimidating and easier for landlords and tenants to obtain the swift and accessible justice they need if the relationship is to work effectively.

Finally, the Coalition argues that such reforms must be part of a wider package of measures, including welfare reforms, to provide better support for vulnerable tenants and smart taxation to encourage the development of new homes for private rent.

The Fair Possessions Coalition is made up of:

  • ARLA Propertymark;
  • Cornwall Residential Landlords Association;
  • Country Land and Business Association; 
  • East Midlands Property Owners; 
  • Eastern Landlords Association; 
  • Guild of Residential Landlords; 
  • Humber Landlords Association; 
  • iHowz; 
  • Landlord Action; 
  • Leeds Property Association; 
  • National Landlords Alliance; 
  • National Landlords Association; 
  • North West Landlords Association; 
  • Portsmouth and District Private Landlords’ Association; 
  • Residential Landlords Association; 
  • Safe Agent; 
  • South West Landlords Association; and 
  • Theresa Wallace (Chair, The Lettings Industry Council)

Housing Secretary Publishes Written Statement on Section 21 Reform

Published On: April 29, 2019 at 8:20 am

Author:

Categories: Law News

Tags:

Housing Secretary Publishes Written Statement on Section 21 Reform

On the 15th of April, the government announced that, without a legitimate legal reason, landlords would no longer be able to evict their tenants.

As it stands, section 21 gives landlords the option to evict their current tenants by giving an eight week notice period. These no-fault evictions are issued in instances if the landlord selling the property, or moving in themselves, for example. However, without Section 21, landlords will have little choice but to use the Section 8 route if they wish to evict a tenant, which involves applying for a court order.

This route can take a significantly longer amount of time, however it could mean tenants are much more stable and settled in their homes, plus it could help filter rogue landlords out of the system.

James Brokenshire writes: “The current legislative framework leaves tenants feeling insecure. They can be asked to leave their homes, with as little as two months’ notice, without the landlord providing any reason, using eviction proceedings under Section 21 of the Housing Act 1988. This sense of insecurity can profoundly affect the ability of renters to plan for the future, to manage their finances or to put down roots in their local communities.

“The government intends to establish a fairer system for both tenants and landlords by legislating to repeal Section 21 of the Housing Act 1988. Bringing an end to so called ‘no fault evictions’, would mean that a tenant cannot be forced to leave their home unless the landlord can prove a specified ground, such as rent arrears or breach of tenancy agreement. It would provide tenants with more stability and protect them from having to make frequent and short notice moves. It would also empower tenants to challenge their landlord about poor property standards where this occurs, without the worry of being evicted as a result of making a complaint.

“The private rented sector must also remain a stable and secure market for landlords to continue to invest in. The legislation I intend to introduce will include measures that provide landlords with additional safeguards to successfully manage their properties. We will strengthen the existing grounds for eviction available to landlords under Section 8 of the Housing Act 1988. This will allow the landlord to regain their property when they want to sell it or move into it themselves.

“It is important that landlords can have confidence that the court system works for them in instances when there is no other option but to seek possession of their property through the courts. That is why this announcement includes improvements to court processes, to make it quicker and smoother for landlords to regain their properties when they have a legitimate reason to do so.”

You can read more about the biggest change to the private rental sector in a generation on the Gov.uk website, here. Plus, find out what our expert Editor, Rose Jinks, thinks about scrapping the section 21 notice.

Our Writer Warns that Scrapping Section 21 could Dampen Housing Supply

Published On: April 18, 2019 at 9:06 am

Author:

Categories: Landlord News

Tags: ,,

Our very own Editor and Writer, Rose Jinks, is warning that scrapping Section 21 could dampen housing market supply.

The Government’s recent announcement to scrap Section 21, therefore banning no-fault evictions, is one of the biggest moves to improving tenants’ rights and promoting more secure housing in the private rental sector.

At present, Section 21 enables landlords to evict private tenants with as little as eight weeks’ notice after a fixed notice period has come to an end. This part of the Housing Act 1988, however, is one of the greatest causes of homelessness in the UK, while also limiting tenants’ abilities to find secure and stable housing.

Although scrapping this part of the Housing Act is set to improve tenants’ access to longer-term, stable homes, Rose is concerned about the implications the ban would impose on both tenants and landlords.

She explains: “If the Government does decide to scrap Section 21 completely, then landlords will need support on how to regain possession of their properties in legitimate circumstances, such as when they need to sell.

“We are concerned that this latest change to legislation could further deter landlords from investing in the private rental sector, as we have seen recently, which could dampen housing supply and make it more difficult for tenants to find homes. What we’re most concerned about is how this will negatively affect tenants in the long-term. We fully support the Government’s aim of improving tenants’ rights, but the effects need to be considered before any changes are implemented.”

Currently, and until the removal of Section 21 is definite, landlords can issue an eviction notice using Section 21 or Section 8 of the Housing Act 1988. If a tenancy agreement started before 1stOctober 2015, then it is legal to serve a Section 21 notice at any time during the tenancy. For contracts that were signed on or after 1stOctober 2015, landlords must wait four months before serving a Section 21.

However, landlords must remember that they cannot serve a Section 21 notice if the tenant has formally complained in writing about the condition of the property and the issue has not been dealt with efficiently.

To ensure a smooth eviction process, Rose advises landlords to ensue that they have up-to-date documents for the tenancy agreement, a signed and dated inventory, the prescribed information relating to the deposit protection scheme, details of landlord insurance, and any notes made during periodic inspections.

If a tenant refuses to leave after the two-month notice period, then a possession order can be applied for – this process usually takes four to six months.

Rose predicts that evictions will be an extremely uncertain process for both tenants and landlords after Section 21 is scrapped: “The Government has mentioned an improved court system to support its Section 21 reform, but we are concerned that they will have the resources and this will not be adequate for supporting landlords through the eviction process, if it is not tried and tested before the changes are implemented.

“In order to enforce the removal of Section 21 effectively, the Government must indicate how it will enable landlords to regain possession of their properties after the change, whether that be through new court processes or an improved Section 8 procedure.”

Renters Get Public’s Support for Protection from Eviction

Published On: August 24, 2018 at 9:58 am

Author:

Categories: Tenant News

Tags: ,,

Public support is widespread, when it comes to the issue of protection for renters from unfair eviction, results from a survation poll reveal.

With a majority of Conservative voters supporting limits on rent increases, and compensation for tenants evicted through no fault of their own. These results put pressure on the Government to improve its proposed reforms for three-year tenancies, which are out for consultation until this Sunday, 26th August.

The poll comes as renters deliver a petition to Housing Secretary James Brokenshire on Thursday which demands an end to landlords’ right to evict tenants with no reason, and is signed by 50,000 people.

59% of respondents to the poll were in mutual agreement that tenants who pay their rent arrears and maintain their home to a suitable standard should have to pay an automatic right to stay in it, while 61% believed that landlords who choose to evict tenants in order to sell their property or move back in should pay the tenant’s moving costs. Just 21% of respondents thought landlords should be able to evict a tenant without providing a reason for the eviction.

Support from controlling rents was even higher, with almost 72% of respondents agreed that landlords should not be allowed to raise rents by more than rate of inflation.

Furthermore, there was also strong support shown for the belief that landlords should be subject to the same levels of regulation as other business 79% and that tenants should expect the same level of consumer protection from their housing as they would from other services, such as their gas or electricity providers (81%).

If a utility company goes out of business, their customers are allocated a new supplier by Ofgem. Currently, if a landlord sells up, the tenant has to find a new place to live themselves – at their own expense.

The poll uncovers that these measures would be popular across the whole population and political spectrum. A majority of owner occupiers would support tenants receiving compensation if they were evicted by a landlord selling up or moving back in.

Older voters were far more in favour of rent caps than younger voters, with 79% of over 55s agreeing with the statement compared with 68% of 18-34-year olds.

Of the people who voted Conservative last year, support for limits on rent increase is, at 72%, of an equal level to the wider population, and 56% believe that blameless tenants should have their moving costs paid if they are evicted. 64% disagreed that landlords should be able to evict without reason. This statistic was more than the wider population. The law that allows this, Section 21, of the 1988 Housing Act, was introduced by the Thatcher Government.

Generation Rent is campaigning to strengthen the protections for tenants by abolishing Section 21, thus ending the ability to evict without grounds. The campaign proposes that rent rises should be restricted to wage growth and that landlords evicting to sell or move back in pay the equivalent of three months’ rent to support the tenant in finding a new home. This would also incentivise sales with sitting tenants.

The End Unfair Evictions coalition will be handing in a petition to the Housing Secretary at the Ministry of Housing today at 1pm, and is urging renters to respond to the government’s consultation by the end of the week. The End Unfair Evictions coalition is Generation Rent, ACORN, London Renters Union and New Economics Foundation.

Director of Generation Rent, Dan Wilson Craw, commented:
“Private renters are well aware of how precarious their tenancies are. Few have any certainty that their home will be theirs in a year’s time, and if their landlord serves an eviction notice, they will face months of upheaval and thousands of pounds in costs to find a new place to live.

“It is heartening to see that the wider public recognises that we all need a stable home. The government has timid proposals for three-year tenancies, but there is clear support across the political spectrum for indefinite tenancies with real protections for renters. This should give ministers the confidence to go much further.”