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Property disputes in the post-Section 21 world

The Government confirmed in the King’s Speech that it would move to abolish Section 21 of the Housing Act 1988 – the name given to ‘no-fault’ evictions of tenants in rented housing in England.

The Renters’ Rights Bill is set to ban Section 21 evictions in a bid to offer increased protections and stability for tenants in rented housing, while still allowing landlords to regain possession in the event of a breach of contract by the tenant.

How will this work in practice? It’s not yet clear, but landlords and tenants are clearly concerned.

What does a Section 21 ban mean?

The Bill is designed to ‘overhaul the private rented sector’, abolishing Section 21 to ‘remove the threat of arbitrary evictions’ while ‘introducing expanded possession grounds’ for landlords.

In practice, this is likely to mean that landlords will need to issue a Section 8 notice if they wish to repossess their property. This allows eviction only on the grounds that the tenant has breached terms of the tenancy.

Tenants will therefore be protected from no-fault evictions.

While landlords will have recourse to retake possession of their property when needed, they will be less able to do so at short notice and without good reason.

Could we see a rise in disputes?

It seems almost certain that this will lead to an initial spike in disputes between tenants and landlords, particularly where landlords are unfamiliar with new rules or where the reason for eviction is disputed.

To avoid this, we’d always advice both tenants and landlords to stay abreast of their rights and responsibilities, and enter into a tenancy agreement with mutual respect for one another’s position.

For example, tenants should take steps to keep the property in a suitable condition and act in line with their contract. In the same situation, the landlord should recognise the property as the tenants’ home, and plan ahead if they need to repossess it in the future.

If you’re a tenant or landlord needing advice on Section 21, please contact our team today.