Landlords to be more careful when selecting tenants after Section 21 ban

Some three quarters (75%) of landlords say they will be more careful when selecting tenants after the abolition of Section 21.

Once the Section 21 ban comes into force landlords will be reliant on evicting tenants where they have grounds for possession, though it’s uncertain how smooth the process will be.

The government has pledged to establish a new Ombudsman for private landlords and tenants to quickly resolve disputes, potentially allowing landlords to recover their properties without the time-consuming process of going to court.

New grounds for possession will also be established, for example if landlords want to sell or invite a family member into the property.

Surprisingly landlords see more positive about the Section 21 ban than agents, as 60% don’t foresee the it resulting in an exodus of landlords, though 70% agents think it will.

However the majority disagree with its removal, as 68% of agents and 55% of landlords are against the move.

Government to give six months’ notice for Section 21 ban

Raj Dosanjh, founder of Rentround, said:  “The abolishment of Section 21 is clearly a worry area for agents and landlords, with many disagreeing with the move.

“Due to the additional risk the abolishment will bring to landlords, it’s obvious that many will move to shorter tenancies and more stringent tenant background checks.

“This will make it harder for tenants with blemishes on their record, or those looking to get long term residencies to rent in the future.”

Anti-social reasons behind Section 8 evictions are seen as very limited and long-winded, so it’s thought it needs to be changed so there’s a lower standard of proof, such as neighbour testimonies on how the tenant’s noise has lowered their quality of life.

Some three quarters (75%) of landlords want cheaper court costs, while unsurprisingly nine in 10 (90%) want clear and comprehensive grounds outlined for possession when required.

Comments 4

  1. Even politicans should be able to understand the impact of their proposals even if Shelter and Generation rent have limited abilities being overfocused on those they believe they are helping. Landlords will be wanting to mitigate the risks as making any mistakes will be incrediably expensive. This will involve being increasely selective to whom you should rent to. Many landlords will just exit the market as the margins decrease. With interest rates rising it may be another incentive to move away from residential lettings. Of course, the people with a vested interest will tell landlords what a wonderful investment BTL is as their income is based on landlords expanding their portfolio not selling it. Probably interesting times but the poorer and less fortunate in society are the ones most adversely impacted. War with landlords will not resolve housing rental supply but the greasey pole of politics will not take that into account.

  2. When the new regulations come in there is the very real risk that a landlord could be stuck with a bad tenant not paying rent, carrying on with antisocial behaviour and neglecting the property for a year or more while the landlord struggles to get the case considered under a Section 8 ground by a court. This is a very frightening prospect. Touch wood, in 15 years or so I have only had to evict tenants twice. Once for rent arrears and once for antisocial behaviour, both times I used Section 21 as do most landlords. I just wanted the property back. It would be interesting to know what percentage of so called “no fault” evictions are indeed covering a fault that would warrant an eviction under section 8. No landlord would evict model tenants unless they needed to sell up.

    I have one empty refurbished rental. I am now seriously worried about moving a new tenant in and never being able to get them out. Then I have EPC worries likely to be coming down the line and all the other costly stuff in the white paper like registration schemes, decent homes inspections, membership of Ombudsmen schemes etc. We don’t know yet but I expect there will be strings attached if you do want to evict to sell up (Generation rent think that tenants should be compensated by £1700 if they are evicted for this reason). I also believe that contrary to what the government say there will be some form of rent control at some point in the future, especially as an election approaches. I don’t want an uncertain future so have decided to pre-empt, sell up now and get the equivalent of twenty year’s rent at today’s prices (even after CGT) with no hassle. As for the good tenants I currently have who show no signs of wanting to leave, should I just bite the bullet and Section 21 them while I still can? I don’t have the heart as I am not the professional landlord that Shelter say I should be. I am sure this is a dilemma facing many landlords especially the accidental ones and those with just one or two properties who just wanted to make a bit of extra money to top up earnings or pensions not to make a full time living.

  3. Northernlandlord, you are of course correct in all your comments. Once a number of landlords have been caught out by the things (traps) put in place by the Left Wing groups like shelter, Generation Rant and the Conseveravtive Government more and more landlords will get out of the market. This will generate a crisis they will not have a solution to. Fact is they (and politicians of ALL COLOURS) have now been attacking those they need (Residential property investors) purely for political gain. This has driven any trust or faith that residential property is a good place to invest. Once the trust is gone, which it pretty much has, it will be nigh on impossible to get such trust back; as happended with the 1977 Rent Act. The fact is the very people that will be harmed most are those who support these rogue organisations. They say the Government couldn’t organise a P up in a brewery. They probably can’t as they were too busy organising it for Downing Street during their imposed Lock Down!!!! I am posting this as I wait for over 5 hours (from 2.00am Sunday morning) for an amublance for my wife (called by 111). Shelter, Gereation Rant and the Government have made themselves the Putin’s of the investor world.

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