In a bid to address the perceived shortcomings of Section 21, iHowz, a prominent landlord organization, is calling for amendments to the legislation rather than its outright abolition. As the organization prepares for a crucial presentation to lawmakers next month, it has drafted a compelling letter addressed to Members of Parliament and Lords outlining its proposals to revamp Section 21.
iHowz asserts its deep concern about the potential unintended consequences that might arise from the complete removal of Section 21, a legal provision often employed by landlords. The organization warns that scrapping Section 21 could have far-reaching implications for both landlords and tenants alike.
Underlining the significance of Section 21, iHowz argues that many landlords use it as a valuable “backstop” mechanism. This mechanism enables them to manage the risk of housing vulnerable individuals who, on paper, might be seen as acceptable tenants.
These vulnerable tenants encompass a wide spectrum, including the homeless, individuals with prior criminal records, and those facing economic disadvantages. Many landlords extend opportunities to these individuals, conditional upon their ability to pay rent promptly and refrain from causing anti-social behaviour (ASB).
iHowz contends that Section 21 affords landlords the chance to reclaim their property, particularly in cases of ASB, ensuring the safety and peace of mind of other tenants and neighbours.
Furthermore, the organization suggests a two-part amendment to Section 21. This proposed revision would introduce a sliding scale for the notice required, based on the length of a tenant’s stay, and establish a recompense scheme. The sliding scale would recognize loyal tenants by providing them with more time to find alternative housing and plan their move, accommodating factors like schooling.
iHowz emphasizes that most tenants who receive a Section 21 notice have been in the property for a substantial period, and the landlord typically needs the property back for reasons such as selling, refurbishing, or improving it. To ease the transition for such tenants, iHowz recommends providing the last two months of the tenancy rent-free, offering financial support for moving costs and deposits on new homes.
The landlord organization believes that these actions would significantly improve the situation for both tenants and landlords, making the eviction process fairer while retaining the only proven mechanism for removing anti-social tenants whose actions negatively impact the lives of other tenants and neighbours.
iHowz asserts that these measures, taken together, would provide tenants with substantial security of tenure while allowing landlords to extend opportunities to potentially high-risk individuals, with the hope that they will eventually integrate into the mainstream community.
When questioned about how landlords would perceive these proposals, including giving up two months’ rent and the need for longer notice to regain possession, iHowz emphasized that their proposal would continue to grant landlords access to Section 21. This would prevent landlords from relying solely on the government’s proposed new Section 8 grounds and improvements to the court process.
iHowz reasoned, “The certainty of the current Section 21 process is worth the cost of these concessions, given that waiting for the courts can take many months, during which time tenants often cease paying their rent. This provides them with an incentive to move on while recognizing that we are asking them to leave.”
With the second reading of the Renters Reform Bill scheduled for this week, iHowz’s proposal has assumed new urgency in the ongoing debate over housing legislation.