Abolition of Section 21: Government Announces Delay

Landlords and letting agents across England and Wales have been following the proposed abolition of Section 21 with keen interest. A government announcement on 20 October 2023 has provided some relief; the planned abolition will not occur until there are significant improvements in court processes for legitimate possession cases.

A Reprieve for Section 21

According to a recent government response to a report by the Levelling Up, Housing and Communities Committee on Reforming the Private Rented Sector, titled "Reforming the Private Rented Sector: Government’s response to the Committee’s Fifth Report of Session 2022-23", the abolition of Section 21 will not progress until the justice system is reformed. Currently, it takes an average of over six months for courts to process possession claims where landlords have valid reasons, such as tenant rent arrears or anti-social behaviour. The government has committed to improving this process before moving forward with any changes to Section 21.

Key Points from the Government Response:

• The abolition of Section 21 will not take place until reforms to the justice system are in place
• A new ground will be established for repossessing properties to protect the annual cycle of short-term student tenancies

Benefits to the Student Housing Market

In addition to preserving Section 21, the government has agreed to establish a new ground for repossessing properties. This is mainly aimed at protecting the annual nature of the student housing market. This will introduce a ground for possession to aid the yearly cycle of short-term student tenancies. This will allow new students to sign a property lease in advance, assuring them they will have a place to live the following year.

Court Reforms Underway

The government white paper, ‘A Fairer Private Rented Sector,’ outlines a range of court improvements to reduce frustration and delays. Some of these include:

• Transforming more of the court process into digital to make it easier for landlords
• Prioritising certain cases, including antisocial behaviour
• Boosting bailiff recruitment and reducing administrative tasks to prioritise possession enforcement
• Providing early legal advice and improved signposting for tenants

However, implementing these reforms is expected to take considerable time, possibly extending to two or three years. As such, the abolition of Section 21 is not likely to occur during the current government term, which ends in early 2024.

Future Implications

The delay in the abolition of Section 21 means landlords can continue to use this notice for the foreseeable future. It is vital to remember that these developments do not represent a cancellation of the abolition but rather a postponement. It is essential for landlords and letting agents to keep abreast of these changes and understand how they may affect their properties and tenants in the future.

The Guild of Residential Landlords will continue to provide accurate and timely information to landlords and letting agents to navigate these changes effectively.