Section 21 Evictions: No Immediate Changes for Landlords

Labour misleadingly announced Section 21 no-fault evictions would be immediately abolished when the Renters (Rights) Bill was introduced.

The bill was introduced to Parliament on September 11, and everything has remained the same for landlords.

Section 21 is still in force, and the court procedures remain unchanged.

How long Section 21 will stay in the statute book remains to be seen. The new bill will take months to pass through Parliament before receiving Royal Assent. This could take until June or July next year.

Meanwhile, landlords have no legal obstacle stopping them from issuing a Section 21 notice.

Section 21 and broken contracts

The alternative for dealing with problem tenants is a Section 8 notice. Section 8 is for landlords who can show a renter should be removed for breaching the tenancy agreement.

The problem is that the tenant will likely argue their case in court rather than leave the property - and many stop paying the rent during the stand-off, which can last months and run up a significant debt.

Section 8 allows the landlord to claim possession for unpaid rent or damages, but it takes longer to process than a Section 21 notice. Generally, the extra effort is not cost-effective as most tenants do not have the money to cover any order for costs or redress ordered by the courts.

Section 21 is for tenants who have reached the end of their contract when the landlord does not want to renew. The main reasons are that the landlord wants to sell the property, move in, house friends or family, or send in builders for a significant refurbishment.

Many landlords find issuing a Section 21 notice easier when dealing with tenants who do not pay the rent or treat their rented home badly as they do not have to prove breach of contract.

What will replace Section 21?

The government intends landlords to issue a Section 8 notice, which will be the landlords' repossession path.

The grounds for repossession are numerous - guidance notes published with the Bill list 25 mandatory grounds and 11 discretionary grounds for evicting a tenant.

The guidance says: “Landlords must, as in the current system, go to court if a tenant does not leave. They will need to provide evidence that the ground is met. The court must award possession if the ground is proven for mandatory grounds. For discretionary grounds, the court can consider if eviction is reasonable, even when the ground is met.

“Where a tenant is at fault, landlords can give notice using the relevant grounds at any point in the tenancy. This includes where a tenant commits antisocial behaviour, damages the property, or falls into significant arrears.

“We will introduce new protections for tenants who temporarily fall into rent arrears, supporting both parties by preventing otherwise viable tenancies from ending. We will increase the mandatory threshold for eviction from two to three months’ arrears and the notice period from two weeks to four. This will allow tenants more time to repay arrears and remain in their homes while ensuring landlords do not face unsustainable costs. Landlords can continue to use the discretionary rent arrears grounds, for example, if rent is repeatedly late.”

Read the government guide to the Renters Rights Bill.