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The End of Section 21 – A nightmare for Landlords or a blessing in disguise?

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The End of Section 21 – A nightmare for Landlords or a blessing in disguise?

Assured Shorthold Tenancies have been around since 1988 – created to improve the number of rental properties available by encouraging landlords to invest in property with the assurance they were able to evict tenants with ease using Section 21.

A recent rule has been proposed to abolish section 21, prohibiting landlords from evicting tenants when the tenancy comes to an end or where no fault has been made. Initially, this proposal aims to protect tenants and ultimately reduce the numbers of homelessness, offering peace of mind and long term security from ‘unethical landlords’. But what does this mean for the future of the market, as landlords may be starting to think ‘is it worth it’?

Without the section 21 notice, it seems landlords with struggle to evict tenants without a valid reason, such as tenants falling into arrears or damage to the property. This being a lengthy and costly process.
So where does this leave landlords?

It is suggested that new legislation will be supported by amendments to the current section 8, enabling landlords to evict tenants if they wish to regain possession to sell or occupy the property themselves.
This new proposal divides opinion between landlords and tenants. With 11 million renters in the UK, they may see a decline in properties to choose from and may suffer from higher rents. And Landlords will have more legislation to comply with – however if rents keep on increasing landlords may eventually end up better off.

With the proposal still up in the air and no concrete decision it is vital as tenant or landlord, you invest in a good agent for advice and assistance. Our Lettings team is led by Paul Johnston with an expertise in residential lettings and management, if you think you may be affected by the above, or would like some further information, please feel free to contact our lettings team based at our Boroughbridge office on 01423 322382.

*Please note it is estimated this change will not be effective for approximately 18 months