The Renters' Rights Bill: The Abolition of Section 21
/The information in this article is based on the Renters' Rights Bill as currently proposed. While these measures are likely to come into effect, they are not yet law and are subject to change. The content provided is for informational purposes only and should not be considered as legal advice. Landlords are advised to regularly check for updates on the legislation and seek professional guidance to ensure compliance with any future legal requirements.
Currently, landlords can evict tenants through either Section 21 or Section 8 of the Housing Act 1988. As part of the Renters' Rights Bill, the government has proposed abolishing Section 21.
What is Section 21?
Section 21 is a legal provision in the Housing Act 1988 that allows landlords to evict tenants in England without providing a reason, as long as the correct process is followed. This is often referred to as a ‘no-fault eviction.’
Under Section 21, landlords must give tenants at least two months’ notice in writing. If the tenant does not leave after this period, the landlord can apply for a possession order through the courts.
Section 21 was introduced to encourage investment in the private rented sector (PRS) by giving landlords confidence that they could regain possession of their properties when needed. Section 21 evictions have generally been faster and more straightforward than Section 8 evictions, which require landlords to provide a legal reason (or ‘ground’) for eviction.
How will landlords evict tenants after Section 21 is abolished?
Once Section 21 is abolished, landlords will need to rely on Section 8, which requires a valid legal ground for eviction. The Renters' Rights Bill proposes expanding and strengthening these grounds to ensure landlords can still regain possession when necessary.
Key changes to be aware of include:
Changes to notice periods
Penalties for misuse
Other alterations aim to prevent landlords from abusing the new grounds, like that of 1A ‘Sale of a dwelling-house’ (evicting tenants to sell the property). Under the proposed changes, landlords who evict a tenant under this ground will be prohibited from re-letting the property for 12 months, even if the sale falls through.
Steep penalties will apply for misuse of the sale ground, including rent repayments and compensation to the evicted tenant and a banning order. Landlords should be confident of a sale before pursuing eviction on this basis.
Will landlords seek alternative eviction methods?
With the eviction process becoming lengthier, some landlords may opt for a ‘commercial arrangement’ to encourage tenants to vacate voluntarily. This could involve covering reasonable moving expenses, such as van hire, security deposits, or the first month’s rent for a new property, in exchange for the tenant leaving by an agreed date.
What will this mean for Section 21 Notices issued prior to the implementation date?
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It is not yet clear how the government will handle Section 21 notices issued before the new legislation takes effect. There are three possible approaches:
Any notices issued prior to the new legislation are still enforceable and can proceed to court. That means all those already posted/delivered to tenants.
Any notices issued, prior to the new legislation where two months has elapsed since delivering the notice and a court fee has been paid, can proceed.
Here, notices given to a tenant less than two months prior to the deadline could be rendered null and void. This means landlords should take note of the upcoming changes and make sure their paperwork has been issued in time.
In this scenario, it would follow that any cases already in court would also be permitted to proceed.No notices could proceed from the date the legislation comes into force. This would halt any proceedings currently in the court system as well as any notices issued but not yet expired (i.e. within the 2 month required notice period).
Generally speaking, the government hasn’t retrospectively applied housing legislation and option 3 is unlikely due to the administrative burden of having to refund court fees already paid where the new law would then prohibit their proceeding.
Until the Renters' Rights Bill passes into law and secondary legislation is published, landlords should stay informed and prepare for these changes. Ensuring compliance with the new rules will be essential to managing rental properties effectively in the evolving legal landscape.