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How scrapping Section 21 will affect landlords in the UK

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How scrapping Section 21 will affect landlords in the UK

Section 21 has long been one of the most divisive elements of the Housing Act 1988 but government proposals to scrap it, as announced in April of 2019, have caused some concern within the property industry in the UK.

It was a shock announcement by the government, not one that was expected by landlords and associations that represent them, and much has been made of the possible impacts of Section 21 eviction no longer being on the statute book. With this in mind, we have decided to take a closer look at what these effects might be. But first, here’s a little more background about Section 21.

What is Section 21?

Introduced as part of the Housing Act 1988, a Section 21 notice is usually the first step taken by a landlord to regain possession of their property from a tenant. Over the years it has come to be known as a ‘no fault eviction’ because the landlord does not have to provide a reason for wishing to do so.

Changes to the Section 21 laws were made as recently as 2015, which added extra requirements to landlords looking to use it to evict tenants. These new guidelines on serving a Section 21 notice meant that they were only able to stand if landlords had provided an up to date gas safety certificate, an energy performance certificate and a how to rent guide. Since 2018, landlords have also been required to give their tenants information relating to the protection of their deposit. However, now the government has decided to scrap the Section 21 policy altogether.

Reasons for the change

The Housing Secretary at the time, James Brokenshire, said it was ‘the biggest change to the private rental sector in a generation,’ adding that ‘by abolishing these kinds of evictions, every single person living in the private rented sector will be empowered to make the right housing choice for themselves – not have it made for them’. There had also been pressure from tenants’ groups and housing charities who felt that Section 21 left their members with too few rights.

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