Propertymark, a leading industry body, has cautioned the government that abolishing Section 21 could severely strain the court system. The organization argues that the proposed changes would impose significant costs and lengthy delays, which may prove detrimental to landlords.
Propertymark’s stark warning comes as the Labour government plans to introduce Awaab’s Law to the private rented sector and outlaw bidding wars, in addition to banning Section 21.
Impact on Landlords
The abolition of Section 21, which allows landlords to evict tenants without reason, could intensify existing supply and demand issues, potentially driving up rents for tenants, Propertymark suggests. The industry body expressed these concerns in a written submission to the Public Bill Committee regarding the Renters (Reform) Bill last December.
In their submission, Propertymark presented data showing widespread anxiety among its members. The organization fears that the new measures could make the private rented sector more hostile to landlords and inadvertently harm those in desperate need of housing.
Nathan Emerson, Propertymark’s CEO, emphasized the need for a viable replacement mechanism before Section 21 is abolished. “The Renters’ Reform Bill has introduced a great deal of uncertainty for landlords, letting agents, and tenants. It is vital that any legislation to remove Section 21 includes a suitable legal mechanism to prevent a backlog of cases in the courts,” Emerson stated. “Any new Bill must strike a balance between protecting tenants’ rights and ensuring that landlords can repossess properties when necessary.”
Labour’s Stance on Housing Reforms
In her first speech as Chancellor, Rachel Reeves pledged to “finally get rid of no-fault evictions.” She also confirmed that Energy Secretary Ed Miliband and Housing Secretary Angela Rayner would outline plans for energy-efficiency targets for social housing.
The Labour government’s proposals are part of a broader effort to reform the housing sector, aiming to enhance tenant protections and improve housing standards across the country. However, Propertymark’s warnings highlight the need for careful consideration of the potential impacts on landlords and the broader housing market.