Section 21 Is Ending But Let Us Have A Say On How It ends
Section 21 Is Ending But Let Us Have A Say On How It ends:
Paul Shamplina, an executive of Landlord Action, talks about tenancy reform.
Consultation on Tenancy reform ends at 11:45 pm on 12 October 2019.
Paul pleads that letting agents and landlords should take part in the consultation.
According to him, their views are important to the outcome of the reform.
Foremost, Paul notes that he spoke on the situation in a TV interview with Panorama.
Notably, he was with Richard Bilton in the interview two summers ago.
He is quoted saying “There is no such thing as NO-FAULT Eviction under Section 21”.
Paul says landlords always have a reason for requesting possession.
LandlordZone conducted a survey that backed this up.
The survey shows that rent arrears are responsible for 58% of possession.
Only 0.5% of possession comes because renter has requested for repairs.
In other words, such possession is known as ‘Retaliation Eviction’.
Nevertheless, the tenants are unaware of the reason for the possession.
Well, this is because the landlords do not let them know.
Unfortunately, there is no specific data to support this.
However, The Lettings Industry Council asks its members to conduct surveys for their letting agents and landlords.
The surveys will shed more on how many Sections 21s they are sending out.
Also, they will highlight the reasons for sending them out.
Paul says he has reiterated this in previous articles.
Landlord associations and trade bodies are having a meeting.
Resultantly, the industry is uniting.
Hence, the government should understand a particular message.
That is, they should not ban Section 21 yet.
Banning Section 21 will require more hearings, portals, judges, and administration.
Thus, the Court System or Housing Courts will need to handle more cases.
So, the Court System or Housing Courts must be ready before the ban.
Furthermore, tenants need better education tools.
Also, the government should overhaul the bailiff system.
This ensures that landlords are confident of repossessing their properties if needed.
Problems facing landlords
This is the most significant change and problem for landlords for years.
Comparatively, it is more threatening than additional stamp duty.
Also, the tenant fees ban or Section mortgage interest relief is not as threatening.
However, all investors require confidence.
Professional landlords with big portfolios and one-property landlord need confidence.
Even big institutional investors in the Build to Rent industry need confidence too.
The Fair Possessions Coalition already filed a response statement.
This coalition includes ARLA Propertymark, Safe Agent, and the Residential Landlords Association.
Other bodies involved are the National Landlords Association and Landlord Action.
These bodies filed the statement to the government.
They detailed how Section 8 should be.
The statement includes clear reasons for repossession.
The reasons ensure that undependable tenants or predatory landlords cannot take advantage of it.
The regulations and processes need an overhaul.
Consequently, landlords will be able to repossess their properties if needed.
Links between the changes
Paul continues on banning Section 21, the introduction of Housing Court, and longer-term tenancies.
He says there is a link between all of them. In addition, there is a need for them to work together.
He notes that the landlords want to show the positives.
Nonetheless, the current system is affecting them.
He says landlords have shown their needs.
If the needs are met, they will have more assurance.
Hence, they will invest in buy-to-let in the future.
Therefore, it is important for the Ministry of Justice to invest.
The Ministry of Justice released 2018 statistics.
The statistics say people issued 116,500 claims.
Social landlords issued 71,500 out of all the claims.
Private landlords used Section 8 with hearings to issue 22,500.
Lastly, accelerated possession proceedings were responsible for 22,500.
Overall, 89,000 of the claims for possession were granted.
Out of those for possession, 60,000 later had a warranty issued.
Also, county court bailiffs issued 32,000 claims for repossessions.
In bailiff warrant fees, the ministry of Justice earned more than £7.2 million last year.
Here is the breakdown of the accelerated procedure from 2018:
- Issued claims: 22,500
- Those that resulted in possession orders: 18,000
- Those that resulted in warrants: 12,700
- Evictions through the accelerated procedure: 10,000
There are no specific figures since Section 21 is “no-fault.
However, many of these evictions are because of councils’ encouragement.
Councils encourage tenants not to leave until eviction is certain.
This is particularly due to the extreme shortage of social housing.
Resultantly, the landlord bears the burden.
Both the tenant and landlord lose time, rent areas and go through stress.
What will be the outcome of banning Section 21?
Therefore, Paul asks “what will be the situation for the tenants if the Section 21 ends?
Though rent arrears are the cause of lots of Section 21 cases, it is not certain.
What if landlords need to use Section 8 with a hearing and get a money order?
The councils will make renter owe rents and become homeless.
Hence, they will not need to find them a house. What will be the outcome of that?
Furthermore, Paul makes a prediction.
He predicts that Section 8 hearing will become twice what it currently is.
This is because landlords can no longer use Section 21.
As a result, the court time will become double.
Also, there will be a need for more judges to handle the hearings.
Paul reiterates his opinion on Section 8.
He says there should be a registration of County Court Judgement after making a money order.
This will help landlords gauge the renters.
They can easily know those with previous possession cases related to rent arrears.
So, they can avoid a repeat of such situations.
However, it is very unlikely that the government will agree.
In England, the government already launched a consultation on Tenancy Reform.
The reform will last for 12 weeks.
Basically, it will consider banning Section 21 and improving the court system.
Similarly, it will consider another process for repossessing a property through Section 8.
For lots of years, this change is one of the most significant reforms in the PRS.
Considering these challenges, you need up-to-date information.
You must learn about the latest development concerning the reform.
To learn more, you can count on us at Reneza.
We offer information and solutions.
Letting agents, landlords, and tenants can rely on us.