Propertymark has called on the Labour Government to provide explicit details on its plan to abolish Section 21 ‘no-fault’ evictions under the forthcoming Renters’ Rights Bill. The organization also emphasized the need for a legal mechanism to prevent the court system in England and Wales from becoming overwhelmed.
In his recent speech, King Charles announced: “Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no-fault evictions and reforming grounds for possession.”
Propertymark has previously cautioned that eliminating Section 21 without a viable alternative could lead to significant delays and costs for both landlords and tenants.
Uncertainty Surrounding Renters (Reform) Bill
Nathan Emerson, Propertymark’s Chief Executive, commented: “The Renters (Reform) Bill caused great uncertainty for many landlords when it was introduced by the last government. We hope the new UK government’s revised version of this legislation clarifies what new mechanism will be implemented if they succeed in abolishing Section 21.”
“While Propertymark supports renters having firm rights to challenge unfair practices, any new legislation must strike a balance that is fair for all involved. Ultimately, there is a concerning lack of housing stock within the marketplace, and there needs to be clear pathways and support for investment to help boost supply and provide choice for prospective tenants when it comes to choosing a new home.”
Concerns Over the Conservatives’ Original Renters (Reform) Bill
Last December, Propertymark presented evidence to the Public Bill Committee regarding the Conservatives’ original Renters (Reform) Bill, highlighting that private landlords were apprehensive about the abolition of Section 21 without a robust replacement. Section 21 notices allow for ‘accelerated’ claims that bypass the court system. The Conservatives’ bill proposed expanding the grounds for possession under Section 8, which would have resulted in more cases going through the courts. It remains unclear how Labour’s plans will address this issue.
Increasing Pressures on Landlords
Propertymark also warns that increasing regulatory and financial pressures on landlords could deter investment in the private rented sector. This, they argue, could lead to many landlords exiting the market and discourage new ones from entering, resulting in fewer homes to rent and higher rents.