Propertymark has warned the new UK government against the abolition of Section 21 no-fault evictions insisting that without an adequate replacement mechanism, the court system in England and Wales would be overwhelmed.
Propertymark members have voiced their concerns around landlords already looking to leave the sector and the industry body has said Section 21’s abolition will provide another reason for current landlords to leave the sector.
It also believes abolition will prevent prospective investors from entering and create a further shortage of homes ultimately pushing rents even further up for tenants.
Labour pledge
During the 2024 General Election, Labour campaigned to clampdown on ‘unscrupulous landlords’, and to abolish Section 21.
The last Conservative government also wanted to ban Section 21 no-fault evictions as part of the Renters Reform Bill, which never became law.
However, Propertymark submitted written evidence to the Public Bill Committee on the legislation in December 2023, citing data which proved the level of anxiety amongst member agents about measures likely to make the private rented sector more hostile to private landlords and the unintended outcomes for people desperate for homes.
Section 21 notices allow ‘accelerated’ claims to skip the court system. The Tories’ Renters’ Reform Bill would have resulted in extending the grounds for possession under Section 8 instead – which would have meant many more cases having to go through the courts. This, Propertymark says, is why Labour needs to clarify how its plans to remove Section 21 would work.
Propertymark chief executive Nathan Emerson commented: “The Renters’ Reform Bill brought a great deal of uncertainty to landlords, letting agents, and tenants, so it is vital that the UK Government’s fresh legislation to remove Section 21 guarantees that it is being replaced with a suitable legal mechanism that prevents a backlog of cases to the courts. Any new Bill must strike a balance between protecting tenants’ rights and ensuring that landlords have a suitable legal mechanism to repossess properties when necessary.”