What are section 21 notices and how are they changing?
There is a lot of discussion in the property sector at the moment about the proposed changes to rental law. One of the key elements that could disappear is the section 21 notice, the only means a landlord has to evict a tenant who hasn’t breached their tenancy agreement.
In this blog, we look at section 21 notices, why they could be abolished and what might replace them.
What is a section 21 notice?
A section 21 notice is one of two legal ways a landlord can evict a tenant (the other is a section 8 notice, used when there has been a breach of the tenancy agreement). Section 21 notices are also called “no fault” evictions because landlords can use them to evict a tenant without the tenant having broken their tenancy agreement.
Section 21 notices are helpful from a landlord’s point of view. If you’re a landlord, you’ll have financial pressures like nearly everyone does in these difficult times. You might want the freedom to claim your rental property back so you can move into it yourself, or move a family member into it. Alternatively, you might decide (or need) to sell. If the new owner is someone who is looking for a private house, the tenants would need to leave so the new owner can move in. Section 21 notices give you the means to do this.
Unfortunately, section 21 notices are bad news for tenants. A tenant can be happy and settled in their property, which they regard as their home. They pay the rent and look after the property. But as long as there are section 21 notices, being a good tenant is not enough to protect against eviction.
Will section 21 notices be abolished?
The government has been developing a Renters’ Reform Bill since 2019. Discussions began in response to the need to make the rental sector fairer and restore the balance between landlords and tenants. It now looks likely that the bill will be voted upon during summer 2023.
One of the items on the bill is the abolition of section 21 notices. The abolition won’t be confirmed until the bill goes through parliament, but it looks very likely. At time of writing (February 2023), landlords can still service section 21 notices.
What will replace section 21 notices?
Section 21 notices will be replaced by a strengthened section 8 notice. This will mean that landlords can only evict tenants if they have breached the tenancy agreement. This will give more protection to tenants.
There are still lots of questions around how this will work in practice. For example, what would happen if a landlord had no choice but to surrender the rental property? The tenant would not have breached their agreement but the landlord might still need to evict them. Questions like this will have to be answered before the bill can be finalised.
Let property in Guildford
Changes to landlord legislation may seem daunting but Cobbles are here to help! Our thorough processes and tenant checks mean that we attract reliable tenants and provide solid support to landlords. When the new legislation comes, we’ll do our best to help you navigate it and continue to see a good return on your property investment. Contact us today to find out more on 01483 457 000.
What are section 21 notices and how are they changing?
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