Jessica Harris discusses Labour’s plans to abolish section 21 ‘no-fault’ evictions in EPrivateClient

Jessica’s article was published in EPrivateClient, 8 August 2024, and can be found here.

Jessica Harris, Senior Associate in our Commercial Property department, discusses the implications of the Labour government’s plan to abolish Section 21 ‘no-fault’ evictions, as confirmed in the King’s Speech and expected to be part of the upcoming Renters’ Rights Bill.

Section 21 currently allows landlords to reclaim possession of their property with two months’ notice, without needing to provide a reason. The proposed changes would shift all tenancies to periodic agreements, meaning landlords could only evict tenants under specific legal grounds, such as selling the property or tenant misconduct, under Section 8.

While the abolition of Section 21 is intended to provide renters with greater security and reduce retaliatory evictions, Jessica warns that it could destabilise the private rental sector. Many landlords use Section 21 not to act unfairly, but to avoid lengthy and uncertain legal battles under Section 8. Without this tool, landlords may feel exposed and less willing to rent, especially when dealing with problematic tenants. The perception that landlords frequently misuse Section 21 is, according to Jessica, a misunderstanding of its practical use and legal context.

The unintended consequences of this reform could be significant. Landlords may preemptively issue Section 21 notices before the law changes, shift to short-term lets like Airbnb, or become more selective raising barriers for tenants. Insurance premiums may rise due to increased legal costs, and the already strained court system could be overwhelmed by a surge in Section 8 cases. Despite Labour’s promise to fund the legal system, Jessica argues that the reform may ultimately harm the very tenants it aims to protect, making it harder for them to find and keep housing.

Read the full article on the EPrivateClient website [external link].