What landlords should know about plans to ban section 21 evictions

For several years there have been plans to amend the laws on private renting to make the system fairer and protect the wellbeing and rights of tenants. On Wednesday, September 11, 2024, the new Labour government published a guidance introducing to parliament the Renters’ Rights Bill.

Solicitor Katie Wright from WHN Solicitors’ Clitheroe office, provides an update for landlords on the new Bill.

The Renters’ Rights Bill will see an end to ‘no- fault’ evictions, a plan that was initially proposed by the Conservative government but delayed as ministers sought to first make the court system more effective before making the proposed changes law.

However, the new government now has further plans for changes, which go beyond the original Renter’s Reform Bill, and are expected to come in to force by next summer.

How the law currently stands for landlords

Under the present legislation, a section 21 notice enables landlords to remove tenants without having to provide any reason for doing so. This involves landlords serving an eviction notice at the end of a fixed term tenancy (where there is a written contract), or during a periodic tenancy (which does not have a fixed end-date).

Landlords need to give tenants a minimum of two months’ notice.

What is in the new Renters’ Rights Bill?

The new law will abolish a landlord’s right to evict a tenant without providing a good reason for doing so. Section 21 notices will no longer be valid, and instead, landlords will need to proceed through a section 8 notice, which must set out a valid reason for requiring possession of the property.

Under the new law, landlords will no longer be able to include mid-tenancy rent increases and will only be allowed to raise rent once a year, in line with market rate. Landlords and letting agents will be required to publish the asking rent price when advertising a property, and will be prohibited from asking, encouraging or accepting any bids above the asking rent price.

Furthermore, landlords will no longer be able to choose a blanket ban on tenants who are in receipt of benefits or have children. Landlords will also need to consider and will not be able to unreasonably refuse a tenant’s request for pets.

The Ministry of Housing, Communities and Local Government has said that the Bill will extend Awaab’s Law into the private rented sector, enabling tenants to challenge dangerous conditions. Landlords will face fines of up to £7,000 if their properties do not meet a ‘decent homes standard’. They could also face prosecution for non-compliance.

A new Property Ombudsman will be introduced, which will offer a fair and impartial resolution service to settle disputes, without the need for the parties to go through the court.

Advice for landlords in lieu of the new Bill

Until the Renters’ Rights Bill comes into law, section 21 evictions can still proceed. Landlords should therefore not worry if they have or are intending to serve a section 21 notice in the next couple of months, however, it is expected there will be an increase in section 21 claims issued before the new las comes in to effect, and therefore if intending to rely on such a notice, it is advisable for landlord’s should act sooner rather than later.

Even once the changes do come into force, landlords will still be able to get their properties back in circumstances including where tenants fail to pay rent, tenants participate in anti-social behaviour, or where the landlord wishes to move back into or sell the property.

Based within the private litigation department at our Bury office, Katie’s areas of expertise including residential landlord and tenant disputes, contractual disputes, land disputes and boundary disputes, as well as debt recovery.

If you are a landlord seeking advice regarding the Renters’ Rights Bill, please contact Katie on 01200 408 303 or by email [email protected]