Just over 75% of landlords surveyed by Landbay said they were very concerned about plans to abolish Section 21, announced as part of the government’s recently published Renters’ Rights Bill.
Catastrophic impact
Landlords said their main concern was losing their ability to remove problem tenants, arguing that their ability to expel bad tenants was vital.
Landlords who responded to the survey described the abolishment of Section 21 as “completely wrong” and “a catastrophe”.
Angela Rayner told members at the Labour Party Conference that the bill will “rebalance the relationship between tenant and landlord and end no-fault evictions for good”.
The Renters’ Rights Bill was introduced to Parliament last month.
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The proposed law includes a ban of Section 21 ‘no-fault’ evictions for new and existing tenancies, an end to blanket bans for tenants on benefits or with children, and an extension of Awaab’s Law to the private rented sector (PRS).
Awaab’s Law was introduced to the social housing sector last year after two-year-old Awaab Ishak died due to damp and mould in his home. It requires landlords to address and fix health hazards in rented homes within 14 days of complaints being made.
Housing minister Matthew Pennycook told the BBC that the government hoped the new laws would be in place before next summer.
Court process raises concerns
Unlike the Renters Reform Bill proposed by the Conservatives, the new bill does not make the abolishment of Section 21 dependent on improvements to the court process, said Landbay.
Landlords told the lender of their concerns about the already slow and lengthy court process.
Rob Stanton, sales and distribution director at Landbay, said: “Rent reform has long been on Labour’s radar and formed a key part of its election manifesto. We knew this would be a priority for the new government and it looks like it plans to move quickly. Nonetheless, our research shows that landlords have significant concerns about the new bill, particularly around ‘no-fault’ evictions.
“While no decent landlord will object to tenants being treated fairly, they argue that the property owner deserves the same rights. We have to hope that, as the bill starts its long journey through Parliament and the House of Lords, amendments are made to create a fairer piece of legislation that doesn’t negatively impact supply or rent for tenants.”
