No Fault Section 21 Eviction Ban Delay

Under the Renters Reform Bill, as well as things like allowing pets in rented properties and greater protection for both tenants and landlords, it was also proposed to ban so called “Section 21” no fault evictions.

This part of the Bill has now been delayed with Housing and Levelling Up Secretary, Michael Gove suggesting that the court system needs to be improved/updated before No Fault Evictions can be banned.

Other Points in Renters Reform Bill

• Automated court application system to cope with increased demand.
• The Bill has passed its 2^nd Reading in the House of Commons and is now at cross-party committee stage.
• Pets will be allowed provided provision is made for pet damage insurance or other protection for damage.
• Assured shorthold fixed term tenancy agreements will disappear and replaced by flexible rolling contracts.
• Tenants must give two months notice of giving up tenancy.
• Landlord can only increase rent once a year and must also give two months notice.
• Properties must register on a local authority property register with info for prospective tenants on property, energy performance, landlord ratings and more
• A new Property Ombudsman to independently adjudicate on any disputes.

Comment

We assume this is because many landlords have to revert to the courts to enforce and no-fault evictions i.e., many precedents have already been set to allow them but now, a change in the legal system to override the precedents already been set will be permitted.  In addition, we also assume that many MPs and Lords are property investors, so it may have been difficult to get the Bill through parliament.

This is a tough one, there are times when landlord’s will need to sell up through no fault of their own or their tenant and we suggest care need to be taken to protect both sides of any rental agreement.