The Renters (Reform) Bill is one of the most significant pieces of legislation for the private rental sector for a number of years. One of the key commitments of the bill is to abolish section 21, also known as ‘no fault evictions’.
At the bill’s second reading in October 2023, the government announced they will pause the abolition of section 21 to enable reforms of the justice system to be enacted. Here’s the latest and everything you need to know as a landlord about section 21 and the proposed changes.
What is section 21 and section 8?
A section 21 notice allows you as the landlord to evict a tenant by providing them with two months' notice. You may need to give a longer notice period if you have a ‘contractual’ periodic tenancy. This is a fixed term tenancy that has ended, but includes a clause to continue as a periodic tenancy.
A section 8 notice is issued to end a tenancy and can help landlords to repossess their property. This type of notice is served when a landlord has authority to regain possession of their property, but it can only be issued if certain criteria are breached by the tenant.
What is set to change for section 21?
Plans to abolish section 21 eviction notices were confirmed in the new A Fairer Private Rented Sector white paper in 2022.
The bill aims to simplify tenancy structures by making all tenancies periodic contracts. This means that a tenancy will end only if the tenant chooses to leave, or if the landlord has a valid reason, as defined by law through section 8 grounds. This would mean there would no longer be a need for section 21, putting an end to ‘no fault evictions’.
Why is section 21 set to be abolished?
Under current legislation, it was noted that some renters face a lack of security - especially in terms of section 21 ‘no fault’ evictions. The government also found in its A new deal for renting: government response that section 21 evictions led some tenants to feel reluctant to challenge poor living standards. The new rules aim to empower tenants to challenge poor practice without fear of eviction.
What do these proposed changes really mean for landlords and tenants?
Once section 21 is abolished, landlords will need to provide their tenants with a reason for ending a tenancy, for example, wanting to sell the property. Tenants will be able to choose to end the tenancy at any time, as long as they provide two months' notice to the landlord.
How will landlords be supported without section 21?
The government aims to strengthen the grounds for possession under section 8 of the Housing Act 1988. This will allow landlords to recover their property in reasonable circumstances.
After a tenant has lived in a property for six months, landlords will be able to evict a tenant under section 8. This includes:
- Redevelopment
- Wanting to sell the property
- Allowing a close family member to move in to rent the property
- Anti-social behaviour
Will section 21 still be abolished?
The government's latest response to the bill indicated that while the plans for abolishing section 21 will still go ahead, the abolition will not take place until "significant progress has been made to improve the courts."
Improvements include:
- Exploring how to prioritise cases of anti-social behaviour
- Improving bailiff recruitment
- Digitising the courts process
- Strengthening mediation services
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