Note: Articles on the Renters’ Rights Bill will be continuously updated as details emerge
Last updated 11 October 2024
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Labour has made it clear that once the Renters’ Rights Bill has passed, it intends to abolish Section 21 as soon as possible – and the indication is that this could be as soon as summer 2025.
In the Government’s own words, this will, “provide more security for tenants and empower them to challenge poor practice and unfair rent increases without fear of eviction”.
Once Section 21 has been scrapped, landlords will no longer be able to evict a tenant at two months’ notice (after the first six months of the tenancy and once any initial fixed period has expired) without giving a reason. Every eviction will require a Section 8 notice that states one or more valid grounds.
If a tenant refuses to leave the property, a possession claim will have to be made through the courts and will require a hearing – there will no longer be an ‘accelerated possession order’ option. However, it is believed that the courts may be introducing new digital procedures to speed things up.
The new system will be applied to all tenancies at the same time, in contrast to the Renters (Reform) Bill, which would have abolished Section 21 for new tenancies first and for existing tenancies at a later date.
This is one of the most significant and publicised changes in the Renters’ Rights Bill, and it was certainly a contentious and much-debated area of the legislation proposed by the previous Renters (Reform) Bill.
Section 21 was a key plank used by the Thatcher government during the late 1980s to encourage landlords to invest in the private rented sector by persuading them that if a tenant stopped paying the rent, they would have a failsafe way to remove them. As a result the private rented sector has flourished.
While Section 8 notices require landlords to cite at least one of 17 specific grounds for eviction, a Section 21 notice can be served without the landlord having to give a reason. Then, if the tenant refuses to leave, the process of getting a possession order from the court is quicker and easier under Section 21 than with a Section 8 notice.
However, the reality is that the vast majority of landlords don’t simply evict tenants on a whim for no good reason. If a tenant is abiding by the terms of their tenancy agreement and paying their rent on time, why would a landlord want to let them go?
Although some rogue landlords have used Section 21 to evict tenants ‘unfairly’ - including via ‘revenge evictions’ - this is a very small minority of landlords. Section 21 notices are commonly used simply as a straightforward way to bring a tenancy to an end when both the landlord and tenant agree, or when there’s another good reason for a landlord to evict their tenant.
According to the English Housing Survey 2022 to 2023, only nine per cent of tenants who had moved within the private rented sector in the last three years said their previous tenancy ended because they were asked to leave. Two-thirds of those evictions were because the landlords wanted to sell or use the property themselves. That means just three per cent were evicted for some other reason – which may have included their own breach of tenancy.
One of the key concerns over the scrapping of Section 21 is that the court system as it currently stands will not be able to handle the increased number of possession claim cases, given that every eviction will require a court hearing.
Speaking to LandlordZONE, Paul Shamplina, founder of Landlord Action, predicted a “tsunami of landlords” will put in Section 21 notices before the ban is implemented.
The previous Conservative Government had pledged that they would not move ahead with abolishing Section 21 until the court system had been reformed to make sure it could process possession claims efficiently. However, with Labour planning to implement the change as quickly as possible, there is widespread concern that there could be huge delays to landlords being able to legally remove tenants and regain possession of their properties.
If all goes smoothly, the court process typically takes around nine weeks. If a bailiff is required, that can add another four to six weeks. However, if courts are busy, it can take much longer, during which time a landlord is unlikely to be getting any rental income.
“We need confidence in the court system - at present the delays are unacceptable and will just get worse. Landlords need to know they can get their properties back in good time. And when it comes to anti-social tenants, if legally removing them takes many months, in addition to being costly for landlords, it can be hugely damaging to the welfare of co-tenants and neighbours."
- Paul Shamplina, Founder of Landlord Action
Ben Beadle, CEO of the NRLA, also stressed the need for reform to make sure courts do not buckle under the pressure of possession claims that will need to be heard under the new rules. He said:
“The cross-party Housing Select Committee has warned that without reforms to ensure the courts process cases much more swiftly, they risk becoming overwhelmed. This will not serve the interests of tenants or landlords seeking justice.”
- Ben Beadle, CEO of the NRLA
And Propertymark’s head of policy and campaigns, Timothy Douglas, says:
“There must be a commitment to ensure the court system and grounds for possession are robust and fit for purpose. Without an enhanced, effective and well-resourced enforcement regime from local authorities it is unlikely that any benefits from the reforms will be realised.”
- Timothy Douglas, Head of Policy and Campaigns, Propertymark
Currently, Labour has not outlined plans for any specific reforms to the courts.
“The Government is hoping that there will simply be fewer evictions as it perceives that s21 was being over-used. I think there will be a rise in the short term as landlords evict while they can, followed by a drop as the new legislation comes in. Evictions will then slowly rise as landlords get used to the new process and continue to evict where they have to. Most s21 evictions did have an underlying cause and while some landlords will shy away for fear of the courts and high legal fees, they will simply not have a choice. Over time I expect eviction statistics will return to close to existing levels.”
- David Smith, Head of Litigation, JMW
Landlords have long been assured that while they will lose the ability to evict a tenant without having to state a reason when Section 21 is abolished, Section 8 grounds will be expanded and strengthened to make sure they can regain possession when it is reasonable to do so.
Landlords will still be able to bring proceedings to evict a tenant at any point during the tenancy if they have breached the terms of their rental agreement – for instance, if they have committed antisocial behaviour or are damaging the property. Most of these grounds are unchanged.
However, where tenants are not at fault, some minimum notice periods have been increased in order to give tenants more time to find a new home and reduce the risk of them becoming homeless.
A full list of the reformed grounds for possession and required notice periods can be found at the bottom of this section of the government guidance.
One of the most common reasons for a tenant being asked to leave when they have not breached their tenancy is because the landlord wants to sell. Currently, a landlord can simply give a tenant two months’ notice via a Section 21. The Bill introduces a new Section 8 mandatory ground (1A) ‘Sale of dwelling-house’, but:
The same applies if the landlord wishes to move into the property themselves.
It’s important to know that if these grounds for eviction are used and then the property is subsequently re-let within a restricted period (around 12 months), penalties will apply.
The other significant change to Section 8 relates to the mandatory ground for serious rent arrears.
Currently, notice can be served once the tenant is at least two months in arrears, and the notice period is two weeks.
The proposed changes will:
This means that a landlord will already have received no rental income for three months at the point they serve a Section 8. The tenant then has another month before they are required to leave. If they refuse to do so, the landlord has to apply for a possession order, which could take some time to make its way through the court process. Currently, this is typically around nine weeks, although with the increase in eviction cases needing a court hearing once Section 21 is scrapped, it is highly likely this timeframe will be longer.
So, if a non-paying tenant digs their heels in, it could be six months to a year before a landlord can legally regain possession. And if there is a mortgage on the property that they need to keep paying, the landlord could easily find themselves with a considerable hole in their finances.
This drawn-out process is one reason that many landlords currently use a Section 21, rather than a Section 8, to evict a tenant who’s falling behind with their rent. They can issue that immediately and once the two-month notice period has elapsed, if the tenant refuses to leave, they can apply for an ‘accelerated possession order’.
The other reason for using a Section 21, is that tenants can raise defences to the possession claim in court - which are sometimes spurious. Often, this will result in the judge adjourning the case for a longer hearing. Even if the landlord eventually wins the case, the tenant will effectively have gained an additional few months living rent-free in the property.
So the valid concern is that once Section 21 is scrapped it will be more time-consuming and costly for landlords to regain possession – particularly with the additional six-week ‘wait period’ before a tenant in serious arrears will be required to leave the property.
Given that there is little landlords can do about this, other than make sure prospective tenants are thoroughly referenced and credit-checked before they are accepted, it’s especially important to make sure the eviction is legally sound and efficiently handled so it doesn’t take any longer than necessary.
Paul Shamplina, Founder of Landlord Action, says,
“Many landlords don’t fully appreciate that evicting a tenant in arrears is a legal process that requires them to follow certain steps, such as giving the right notice at the right time. If they get any part of it wrong, the court can simply throw out their case and they have to start over again from scratch, while their tenant continues to live rent-free in their property. My advice to landlords who find themselves in the position of having to evict, is to seek professional help from a legal eviction specialist, such as Landlord Action. The pace of change will be fast over the next year and landlords, the courts, and local authorities will need to adapt quickly so that this sector can continue to flourish.”
- Paul Shamplina, Founder of Landlord Action
In this video, Paul explains the steps to be taken if you are affected by rent arrears. (Recorded in December 2023)
Read our article on what to do if your tenant can’t pay the rent and falls into arrears, for more guidance and our ultimate guide to handling the eviction process.
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You can also visit Total Landlord's Renters’ Rights Bill hub which will be regularly updated as the Bill progresses.
