The fate of No Fault Evictions
The 2024 General Election has been decided. Keir Starmer’s Labour party have now formed the British government. Therefore, all eyes in the property industry are on what’s next for the housing market. Here we explore how industry experts predict the new government will impact landlords. We also look at what we might expect from the next twelve months.
Section 21 ( No Fault Evictions)was the biggest topic of discussion. Labour had promised to scrap the legislation allowing ‘no fault’ evictions if elected. This followed the outgoing government’s failure to pass the Renters (Reform) Bill before election campaigning began.
Paul Shamplina, founder of Landlord Action (https://www.landlordaction.co.uk/), said that – with this in mind – the election victory for Labour would mean there is ‘significant concern within the landlord community today about the future of their properties and tenancies’. However, he acknowledged that deputy leader Angela Rayner had recently admitted that ending Section 21 was more complex. Rayner told LBC we must also ‘ensure the courts system is working and that we’ve got a fair balance between landlords and renters’.
Shamplina said landlords would be acting accordingly, however:
“Nevertheless, we now anticipate a further surge in the number of landlords serving Section 21 notices in the coming months. Landlords are likely to act pre-emptively to protect their interests before any legislative changes take effect. At Landlord Action, we have already seen an increase in instructions for Section 21 notices. This is as many landlords move to secure their rental income or prepare their properties for sale.”
The fate of No Fault Evictions
The fate of No Fault Evictions
“The primary concern is that without the ability to use Section 21, Landlords might face significant challenges in managing problematic tenancies effectively. The uncertainty surrounding the timing and implementation of these changes is likely to drive more landlords to take action now, rather than risk being unable to address issues swiftly in the future.”
Ben Beadle, chief executive of the National Residential Landlords Association, said the body looked forward to working ‘constructively’ with the new government on the changes to ensure they were ‘fair and workable’ for both tenants and responsible landlords, as well as being sustainable long term.
What are others saying?
Others stressed the need for the sector to be kept informed by the government. We need to know about any potential changes to avoid disruption. Oli Sherlock, managing director of insurance at Goodlord, suggesting that the market needs ‘clarity’. He added: “If similar legislation to the previous Bill is set to go through, we need clear information on details and timelines.”
In other areas, experts said the new government must support landlords in order to support the vital role played by the private rental sector.
Isobel Thomson, chief executive of safeagent, agreed that the government should show support for Landlords, commenting:
“We urge the Labour Government to shed what has been perceived up until now to be an anti-landlord/agent agenda. In so doing, the sector will respond in working with the Government to continue to deliver both security and quality of homes for tenants.”
Other experts considered the impact of changes to taxation on landlords, with Perry Jax, marketing director at Alesco, saying that there was ‘caution and uncertainty’ while waiting to see what impact future taxations could have.
He added:
“We will wait with bated breath to see what and who will be the focus. However, our preference is to see second home owners, landlords and investors incentivised. This would lead to a surge in transactions, which in turn will boost the public purse and that is ultimately Labour’s number one priority for the next five years.”
How will this effect Harlow?
Harlow has around 6,000 properties in the private rental sector (approx.15%). Therefore it is going to be in the minds of many tenants & Landlords. Co owner Geoff Flewers of Jukes Estate Agents Harlow says: “We read all of the above with interest. There is no doubt that there is a lot to consider when it comes to the abolishment of Section 21. No fault evictions is a tenants worst nightmare. However, there has to be caveats to protect Landlords. We agree with Angela Rayner 100%. Unless the courts are working correctly then a change in the law will just clog up the system even more.”
Flewers continues:
“Wouldn’t it be fantastic if there were only good Landlords & Tenants? The harsh reality is that whilst there are many good ones, there are also a lot of poor ones. Tenants have to start looking after the properties better & Landlords have to show more compassion and step up to the plate when things need repairing etc.”
What Jukes Estate Agents Harlow would like to see.
The fate of No Fault Evictions
Jukes Estate Agents Harlow top 5 things they would like to see happen:
- The abolishment of No Fault Evictions.
- Tenancy agreements simplified and made clearer as to Landlords & Tenants obligations.
- An easier simplistic system for evicting Tenants who fail to keep the property in a good state of repair and/or who fail to pay the rent.
- Rent suspended if Landlords fail to make good repairs that are their responsibility.
- To make it a legal requirement for management companies to visit premises every 3 / 6 months to ensure everything is how it should be.
Geoff Flewers continues:
“Harlow is no better or worse than other towns when it comes to bad Tenants & Landlords. The same can be said for poor management companies. We have recently taken over some rental properties in Harlow and the level of care they were given by the property management company was poor at best and dreadful in some cases. This led to Tenants losing a big chunk, or in some cases, all of their deposit. No visits took place or they were too infrequent. Tenants could have been educated as to what to do & what could happen. The whole system needs a massive overhaul. Here in Harlow, we are doing our best to change things.”
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