A legal firm warns that the Government’s plans to scrap Section 21 evictions will undoubtedly increase rents as landlords will leave the private rental sector.

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Lee Pearce partner and head of dispute resolution service of an Essex based firm of solicitors, states the government’s incoming Renters Reform Bill although may seem a ‘blessing’ to tenants with its so-called ‘shift in power’ away from landlords, there are going to be serious ramifications for tenants.

In the legal firm’s blog Pearce sends out a stark warning: “There will most definitely be a contraction in the private rented sector as an investment class. The sector may become less attractive if landlords, in appropriate circumstances, cannot rely upon quick and effective means of regaining control of their properties.

“Whether the mandatory grounds for possession, which is set to ensure the system also works for responsible landlords, letting agents and communities, will answer landlords calls for certainty remains to be seen.”

No doubt the White Paper’s Section 21 ban will be included in the Rental Reform Bill and Pearce says that tenants will find it increasingly difficult to find alternative accommodation as landlords will sell up and leave the sector and council housing stock state will be unable to cope with an increased demand.

“Local councils already have lengthy waiting lists for social and affordable housing. If the result is fewer properties coming onto the market, then this may actually push rents higher and will ultimately not be a positive result for the rental market.”

Pearce also points out there could be court delays for repossession claims and adds: “In a no-fault eviction, a landlord can use an accelerated paper-based procedure which does not involve the under-resourced courts and avoids considerable delays that come with listing a hearing at a county court service.

“With the new proposal, the tenant has the opportunity to attend a hearing and for landlords to evidence the grounds that have been met. However, the government has said it will seek to expedite the court process which would go a long way to address landlord’s concerns.”

In his evaluation of the Fairer Private Rental Sector White Paper, he continues: “At present if a landlord is looking to sell the property, the ‘no-fault eviction’ process would be used. However, the new proposal states that a new ground will be introduced to ensure landlords are still able to recover possession of the property when they wish to sell their property, move into the property, or allow close family members to move into the property.

“Landlords are also to be provided further protection against tenants who are repeatedly in serious rental arrears. Currently, unless a tenant is in two months’ rent arrears at the date of the hearing, the Judge is not required to grant a possession order.

“The new proposals mean that providing a tenant has been in at least two months’ rent arrears three times within the previous three years, the Judge is required to grant a possession order, no matter what the arrears are at the date of the hearing. This will protect landlords against tenants who repeatedly get into arrears but stay below the current two-month threshold.