news | Over 1 year ago | Andreea Dulgheru

Section 21 reform revealed as major concern for landlords

A third of landlords are majorly concerned about the section 21 ban, according to new poll data from Mortgages for Business.


The proposed reform, which is part of the Renters Reform Bill, aims to remove landlords’ right to evict tenants at short notice without having to establish fault on the tenant’s part.

Under the proposed new regulation, the section 21 no-fault evictions would be replaced by strengthened section 8 grounds for possession.

According to Mortgages for Business’ managing director Gavin Richardson, the fears surrounding the section 21 ban are a driving force behind landlords not remortgaging and selling-up instead.

However, he claims that landlords have less to fear from the reform than expected, as he claims the ban will target bad landlords abusing section 21 evictions, rather than reputable ones with good tenants.

“Tenancies can still be ended if there has been a breach of the tenancy by the tenant,” he added.

“Furthermore, the government said it will introduce a new ombudsman to settle disputes between tenants and landlords without the need to go to court, said it would speed up court processes where possession cases require them, and promised to digitise the courts’ agenda ahead of these reforms to ensure a swift resolution to these cases.”

While the section 21 ban is a cause of concern for landlords, the biggest worry cited by poll respondents was the higher mortgage rates — a concern for 63% of landlords.

Gavin also believes that the loss of full tax relief on mortgage interest payments for individual landlords, as well as the stamp duty surcharge on additional property purchases and the proposed EPC regulations have a big impact for landlords — even more so than the section 21 ban.

“[These] are all far more significant for landlords, but you’d never guess that from the government rhetoric though,” Gavin stated.

“The politicians are irresponsibly trying to curry favour with tenants: the country will suffer as the PRS — with its efficient use of property stock — dries up.

“The government needs to stop trying to gain cheap brownie points by taking a pop at the private rented sector and needlessly spooking landlords; it is the reason the government has lost the confidence of responsible landlords.”

A new How To Rent guide will be released by the government this Friday (24th March), which will form part of the prescribed information landlords must issue — failure to do so will result in landlords losing the right to repossess using section 21.

For more information about the impact of section 21 and other tax and regulation proposals, read our cover story in the latest BTL Insider Magazine, available here

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