15th
May 2024
A leading PropTech supplier claims the government’s ‘promise’ to scrap Section 21 evictions until the court system has been studied and upgraded, is “not what it seems.”
Oli Sherlock of the supplier, says: "As the [Renters Reform] Bill currently stands, it seems that the apparent promise to delay the scrapping of Section 21 to allow for court reform is not what it seems.
“Instead, it appears that the market will be delivered a fragmented process which sees some tenancies permitting Section 21, some not, and others that could fall into either camp depending on how a tenancy renewal is handled.
“This would all be taking place alongside an investigation into the courts, which currently has no confirmed timeline or identifiable metrics for success. The deep irony here is that the very same courts will be managing more and more cases deriving from tenancies where section 21 has already been outlawed. Arguably this is the worst outcome for all parties.”
Sherlock says there is a loophole in the Renters Reform Bill which means that just one type of tenancy could still allow Section 21 enforcement.
Heaven a leading solicitor who is working with Sherlock maintains in spite of Michael Gove’s pledge that Section 21 will be banned before this year’s General Election, he believes it is highly doubtful that this will happen.
Heaven says, “A lot of people place emphasis on Michael Gove stating that section 21 would be 'outlawed' before the election, but when you examine the Bill closer this is not what will happen; whenever the election date is there will be some landlords in this country who will still be able to serve a section 21 notice even if it others are not able to.”
The three broad tenancy types are:
• A new tenancy created after the Bill has been implemented: Landlords won’t be able to serve a Section 21 notice after this date
· Any fixed-term tenancy that becomes periodic once the Bill has been implemented: Landlords would still be able to serve a Section 21 notice until the tenancy switches over to a periodic one. However, once that happens, the new rules apply, and landlords can’t serve a section 21
· Tenancies that are periodic when the Bill is implemented: For these tenancies, landlords will still be able to serve a Section 21 until the Government reviews the court system, reports on it to Parliament, and then sets an ‘extended implementation date’ at which point the new rules all apply to all tenancies.
This third case contradicts the Housing Secretary’s pledge to ban S21 by the General Election so landlords will still be able to serve Section 21 notices afterwards.
Mr Sherlock said: “As the Bill currently stands, it seems that the apparent promise to delay the scrapping of Section 21 to allow for court reform is not what it seems.
“Instead, it appears that the market will be delivered a fragmented process which sees some tenancies permitting Section 21, some not, and others that could fall into either camp depending on how a tenancy renewal is handled.
He added: “This would all be taking place alongside an investigation into the courts, which currently has no confirmed timeline or identifiable metrics for success.
“The deep irony here is that the very same courts will be managing more and more cases deriving from tenancies where section 21 has already been outlawed.
“Arguably this is the worst outcome for all parties.”
News Archive »